SSE Formulates Action Plan on Further Advancing the "Five Major Areas" of Finance to Continuously Enhance the Quality and Efficiency of Real Economy Services

Shanghai Stock Exchange (SSE) recently formulated the Action Plan on Further Improving the "Five Major Areas" of Finance (hereinafter referred to as the Action Plan) to thoroughly implement the guiding principles of the Third Plenary Session of the 20th CPC Central Committee, Central Financial Work Conference, Central Economic Work Conference, and the requirements of Several Opinions on Strengthening Supervision, Preventing Risks and Promoting High-Quality Development of the Capital Market. The Action Plan was formulated according to the relevant requirements of the Guiding Opinions on Advancing the "Five Major Areas" of Finance issued by the General Office of the State Council and the Implementation Opinions on Advancing the "Five Major Areas" of Finance in the Capital Market issued by China Securities Regulatory Commission.

Centered around further promoting the "five major areas" of finance, the Action Plan focuses on serving major strategies, key fields, and weak links by giving full play to the functional advantages of the SSE in pooling large-cap blue-chip stocks and core technology, and providing a wide range of products and tailored services. It aims to channel more resources to science and technology finance, green finance, inclusive finance, pension finance, digital finance, among other things, thereby facilitating high-quality economic and social development. The Action Plan puts forward 16 specific measures. Regarding science and technology finance, it is necessary to fully leverage the function of the SSE STAR Market in serving "core technology" enterprises and vigorously support the issuance and listing of high-quality technology companies with breakthroughs in key and core technologies. It is also important to improve the supporting systems in follow-on offerings, M&As, equity incentives, and shareholding reduction tailored to technology-savvy companies, enhance the inclusiveness and adaptability of services, and accelerate the development of new quality productive forces. Besides, efforts should be made to improve the product and service system that supports the entire life cycle of technology companies and guide private equity and venture capital investment in "early-stage, small-scale, long-term, and core technology" areas. Regarding green finance, there is a need to improve the equity and debt financing system for green enterprises and projects and support qualified green enterprises in going public, conducting M&As and issuing bonds. Meanwhile, the disclosure of environmental information by listed companies should be strengthened and the disclosure requirements for regular reports on green bonds should be refined. It is required to enrich the variety of green-themed stocks, green bonds, climate transition and ESG-related indexes as well as relevant investment products, in a bid to better serve China's "carbon peaking and carbon neutrality" goals and sustainable development. Regarding inclusive finance, it is essential to step up financial support for private enterprises as well as small and medium-sized enterprises, including equity and debt financing by such qualified candidates. The methods to serve agricultural entities should be diversified and rural revitalization and development should be supported. It is also necessary to increase the supply of inclusive finance products and services while actively developing products with low risks and stable return represented by bond ETFs and high-dividend low-volatility ETFs. Regarding pension finance, efforts should be made to actively promote the entry of medium- and long-term funds such as pensions into the market, vigorously develop equity funds and indexing investment, and encourage various types of medium- and long-term funds to engage in indexing investment. It is crucial to continuously enrich financial services and products that adapt to the characteristics of pension finance while working on expanding the investment scope and coverage of personal pension funds. Regarding digital finance, the application scenarios of financial technology should be expanded, innovations in technology supervision models should be explored, and the digitization of exchanges should be enhanced. It is also important to accelerate the development of the next-generation core trading system (G4 trading system) and establish a digital intelligent exchange. Regarding the promotion of joint efforts, there is a need to urge and guide industry institutions to give better play to their functions and roles, comprehensively reinforce capital market supervision, and make every effort to maintain the smooth operation of the capital market.

Going forward, under the strong leadership of China Securities Regulatory Commission, the SSE will adhere to the guiding principle of seeking progress while maintaining stability, promoting stability through progress, and consolidating stability through progress. Capital market reforms will be comprehensively deepened to facilitate improvement in standards and systems of science and technology finance, green finance, inclusive finance, pension finance, digital finance, and strengthen the coordination, implementation and publicity of the “five major areas” of finance. Furthermore, the SSE will uphold the path of financial development with Chinese characteristics, accelerate the development of a world-class exchange, and facilitate high-quality development and Chinese modernization.