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Shenzhen Stock Exchange revamps trading system

SZSE held the celebration for 10-year anniversary of the 4th version of trading system, also for launching the construction of the 5th version of trading system.

The 4th version of trading system, officially launched on November 12, 2001, was independently researched and developed by SZSE, which, adhering to the fundamental principal of “secure, efficient and self-controllable”, constantly expands and improves the function and performance of the system in light of the needs for constructing China’s multi-layer capital market. In the past 10 years, the 4th version of trading system has witnessed the establishment of split share structure reform, SME Board, ChiNext, and Zhongguancun Park Enterprises Stock Quotation System, and other major business innovation including ETFs, LOFs, margin trading securities lending in the process of rapid development of Shenzhen securities. It plays a significant role as technology support to guarantee the safe and stable market operation and push forward the construction of multi-layer capital market. By far, the 4th version of trading system has provided trading services for as many as 1800 securities, 4700 sales networks and 100 million investors, with the actual peak amount of daily entrusted deals handled as high as 22.47 million, and a 10-year record for continuously safe operation.

As multi-layer capital market continuously develop healthily in China, SZSE, on the basis of ongoing plan, now officially implement constructing new version of transaction system, namely the 5th version of transaction system, so as to support the future business development, provide better market transaction services, and reinforce market competitiveness. The prospective 5th version of trading system aims at, on the one hand, building a scientific and sound structure with higher efficiency, larger capacity, better security, more expansibility and more flexible business adaptation, on the other hand constructing an integrated transaction platform capable of supporting multi-layer, multi-variety, multi-market. It is expected to be launched in 2015, by the time of which the new system’s speed of handling orders will reach more than 200 thousand deals per second.

Chen Dongzheng, Chairman of SZSE Council, and concurrently Secretary of SZSE Party Committee attended the ceremony and announced the official launch of the research and development for the 5th trading system.

Source: Shenzhen Stock Exchange, 16.11.2011

Filed under: China, Exchanges, Trading Technology, , , , , , , , , , , ,

Shenzhen Financial Services and Fund Management Study and Network Tour 3-4 December 2010

Gain deeper knowledge of Shenzhen, China Financial Industry

The study tour is coordinated with the local Shenzhen government support to view the latest mega-development in Shenzhen that would be of interest to business people and visitors alike. Participants will get an orientation of Shenzhen and gain a clear perspective of the importance of Shenzhen in the master plan of the centrally planned economy of China.

Benefits of the Study Tour:

  • Gain first-hand exposure to the current growth climate in Shenzhen
  • Gain an insight into the vibrant economic sectors in Shenzhen
  • Explore ways to capitalize on various initiatives and activities undertaken within Shenzhen
  • Meet and exchange views with the industry’s experts on various challenges and prospects in investing in Shenzhen
  • Create networking and business match-making opportunities among senior executives and those interested in business and investment.
picture Shenzhen today is the leading manufacturing hub of China and the master plan from the Central government which was announced recently is to keep Shenzhen growing for the next 30 years with the building of the “Manhattan” of China at Qianhai, Shenzhen. 

Does this news catch your eye?

Sept. 3 (Bloomberg) — The southern Chinese city of Shenzhen plans to invest 40 billion yuan ($5.88 billion) in its Qianhai area to make it the “Manhattan” of the Pearl River Delta, the Securities Times reported today, citing the local government. The investment in the 15 square kilometer area of the city will be made over the next three years, the Shenzhen-based newspaper reported. The government is looking at the possibility of offering a low tax regime similar to Hong Kong’s and of allowing free convertibility of the yuan in the area, according to the report.

ATIC@Shenzhen 2010 will bring together a group of international participants consisting of fund managers, private equity investors, high-net-worth investors, directors of securities brokerage firms as well as senior executives of global stock exchanges to Shenzhen for an in-depth look at the Shenzhen capital market, as well as to network with Shenzhen government officials, fund managers, securities brokerage firms and listed company CEO’s and companies looking to expand overseas This platform provides a timely and strategic platform to convene investors to discuss strategies, leverage opportunities and explore potential cross-borders business partnerships. Participants will be able to network, mingle and make fruitful contacts to improve their business bottomless.

WHO SHOULD ATTEND?

This is a strategic, informative and concise program designed for Investors, Business Owners, Senior representatives or professionals with Financial Services Organizations such as Fund Management Houses, Securities Brokerage Firms, Securities Exchanges and other finance-related institutions.

Don’t get left behind. Come join us and take this incredible opportunity and advantage to reach your top prospects and grow your business.

Shenzhen Study Tour & Investment Summit Package Price *Early Bird Individual Group (Min 2 persons)
USD750 USD1,000 USD800

*Limited period only.

Package price includes of one study tour luncheon and one exclusive networking and dinner on 3 December 2010. Participation is on a first-come-first-serve basis and interested delegates are encouraged to submit an early registration in order to avoid disappointment.

Register Now!

For more information, please visit http://www.theatic.net/ or contact us at:

Filed under: China, Events, Exchanges, News, , , , , , , , , , , ,

China: SZSE – ChiNext Creates 13 Billionaires on Paper on First Trading Day

China’s GEM market has given birth to more than a dozen billionaires due to extraordinary enthusiasm of investors.

Strong gains on the opening day of China’s Growth Enterprise Market, the Nasdaq-style board for high-tech startups, have created 13 paper billionaires, Caijing reported, citing calculations based on their declared holdings in the IPO companies.

The biggest individual shareholder in Lepu Medical Technology (Beijing) Co Ltd. (SZSE 300003), general manager Pu Zhongjie, saw the value of his 14.9 percent stake soar to 3.8 billion yuan (US$556 million). The stock rose nearly 119 percent to 63.4 yuan.

The surge in stocks also saw the value of 116 investors’ holdings rise to more than 100 million yuan, Caijing has calculated. The total includes the 13 billionaires.

The other big gainers on the first day included Wang Zhongjun, chairman of Huayi Brothers Media Corp. (SZSE 300027), whose holding of 26.1 percent was estimated to be worth 3.1 billion yuan at the close of trading. The stock rose nearly 148 percent to 70.8 yuan.

Chairman Wang Ning and general manager Li Li of Beijing Ultrapower Software Co Ltd. (SZSE 300002) saw the value of their holdings rise to 1.8 billion yuan each after the company’s stock rose 77.4 percent to 102.9 yuan. Wang and Li each own 13.9 percent of the company.

The so-called “ChiNext” market, the brand GEM is marketed under, began trading at 9:30 am on Friday. Gains by the first 28 companies to list ranged from 76 to 210 percent at the close of the first day.

However, due to China’s volatile stock market and a lock-up period ranging from one year to three years, the wealth of today’s millionaires could shrink substantially. It is very hard to predict how many of them still possess seven-digit wealth in a few years.

Some Brokers Gain Big as ChiNext Issues Soar
Several brokerage firms appear to have made substantial profits from investments in companies listed on ChiNext, the new growth enterprise board that opened last Friday.
According to the ChiNext companies’ shareholders list, some brokerages invested in the firms before the initial public offerings. The China Securities Regulatory Commission approved applications by 15 brokers to invest directly in the companies ahead of the IPOs. On Friday, the companies saw their shares skyrocket, with the 28 stocks registering gains of 75.84 to 209.73 percent.

Click here for pre-trading news.

Source:Caijing.com.cn, 02.11.2009 by Shen Hu


Filed under: Asia, China, Exchanges, News, , , , , , , , , ,

Shenzhen exchange proposes more trading ties with HK exchange with cross-listing shares

HONG KONG: Shenzhen stock exchange SZSE is proposing to increase financial ties with Hong Kong, including cross listings, connecting trading networks and allowing Hong Kong-listed red-chips to list in Shenzhen on a trial basis, Caijing magazine reported yesterday, citing Li Lin, director of Shenzhen Financial Services Office.

The market, however, is uncertain about the feasibility of the proposal. According to the plan, Hong Kong H shares will be allowed to list on the Shenzhen Stock Exchange while B shares listed in Shenzhen will be allowed to list on the Hong Kong Stock Exchange.

H shares are Hong Kong-listed mainland companies while Shenzhen’s B shares are denominated in Hong Kong dollars.

The proposal also outlines a trading network connection between Shenzhen Stock Exchange and Hong Kong Stock Exchange, which gives mainland investors direct access to overseas securities markets.

The proposal, which is now awaiting central government approval, will also allow Hong Kong’s exchange traded funds (ETF) and China depository receipt (CDR) to be traded on the Shenzhen Stock Exchange on a trial basis.

Hong Kong Monetary Authority chief executive Joseph Yam said yesterday during a visit to Beijing that, despite differences between the mainland and Hong Kong financial systems, a large number of the financial products are identical and therefore the two sides could cooperate by starting from a trial basis.

A Hong Kong Stock Exchange spokesman said yesterday that some technical problems, including the convertibility of the yuan, needed to be resolved by both sides before cross listing.

Analysts in Hong Kong, however, are uncertain about the feasibility of cross listings.

“Allowing Hong Kong’s H shares to be listed in Shenzhen is theoretically viable but practically with limitations,” said Castor Pang, chief strategist at Sun Hung Kai Financial, adding that “there will be some requirements for the eligible investors, for example, the investor will need to hold a certain amount of Hong Kong dollars.”

“Whether the H shares’ listing will influence the market in Hong Kong depends on the scale of investors,” Pang said.

The analyst also noted that the cross listing may involve some regulation changes.

Source: China Daily, 15.05.2009

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SZSE:Shenzhen Stock Exchange president Song Liping’s Interview with Xinhuanet on the New Market venture board

SONG Liping, President of the Shenzhen Stock Exchange (SZSE) was invited to an interview by the Xinhuanet on 2nd April 2009. SONG Liping had a two-hour discussion with netizens and answered questions on supervision of the new market, relationship between the SME Board and the new market and other related topics.

The China Securities Regulatory Commission promulgated the provisional rules on IPO and Listing on the new market, which is to be effective as of 1st May 2009.

1. Question: What’s the significance to launch the new market given the current economic situation?

Answer: Thank you for your attention on the venture board. Under the current circumstance, the board is of great significance for ensuring economic growth, adjusting economic structure and enhancing job creation.

Firstly, the board is conducive to stimulating private investment and therefore boosting economic growth. As we know that the small and medium businesses play a crucial role in the nation’s economic development. The venture board not only provides leading venture firms with support in direct financing, but also activates private investment including venture capital and private equity. Secondly, the board supports development of new business models and helps adjust, optimize and upgrade of the industrial structure. Thirdly, the board can help create more jobs by promoting venture start-ups. As we all know, SMEs contribute significantly to job creation, supplying 75% of the nation’s employment. The venture culture will be crucial for releasing the dynamic creative powers of society.

2.Question: Is the board able to provide more financing opportunities for businesses currently under the shadow of the financial crisis?

Answer: The board can help solve financing problems for small and medium-sized enterprises (SMEs), which became exacerbated under the current circumstances. Relevant institutions including the central government are working hard to provide all-around financial support to them.

Our analysis shows that the financing difficulty for SMEs also stems from their intrinsic characteristics. For example, SMEs tend to feature less operational stability, under-developed credit lines and limited collateral assets. It is difficult to solve the bottleneck problems at root through bank loans or guarantees. Therefore it is up to the multi-tier capital market to provide SMEs with stable, long-term equity financing.

At the same time the capital market has a leverage power. Once the SME is admitted into the capital market, it gains access to a financial support system integrated through the capital market.

3.Question: Do you think it is the best time to launch the board?

Answer: I think the question involves two issues. First is it the best time to launch the board under the special circumstances and second will it impact the market? Actually, in view of worldwide development of venture markets, it is difficult find the optimal launch opportunity.

However current market conditions indicate a proper opportunity to unveil the venture board. First violent fluctuations last year have made investors more mature and rational. The risk of wild speculation is much lower. Second thanks to years of intense preparation and design effort, the venture board’s rules, regulations and risk-prevention measures have been much improved and more sophisticated. And the three decades of reform and development have produced a large number of high-quality, high-growth companies. Therefore I think time is ripe for the launch.

The venture board will not impact the market. A few days ago, Vice Chairman Yao made this point clear during a press interview. What characterizes the venture board is the small scale and offering size on listing candidates. As Vice Chairman Yao said, even if 100 were to offer shares on the venture board in a year, the total fund raised would be just around 10 billion yuan, less than a single large blue-chip IPO. At present, the A-share market capitalization is valued at 16 trillion yuan and daily turnover at 100 billion yuan. Thus in terms of liquidity, the venture board will not impact the main board. And the experience of the SME board also testified to this point. In June 2004 when the SME board was launched, the market was also depressed. However the launch did not bring serious impact on the market. Instead, it brought in fresh liquidity. As a result, the market became active again. Therefore I don’t think the launch of the venture board will impact the main board.

4.Question: What can we learn from the overseas growth enterprise markets to help with smooth development in our venture board?

Answer: Nasdaq is universally acknowledged as a market characterized by venture enterprises. However it was not called a growth-enterprise market. In fact it was an electronic trading platform. But it became a successful market for venture enterprises. Thus the SEC approved its status as a national exchange.

German Neuer Market failed during the technology stock bubbles at turn of the century. The failure can be attributed to its over concentration on the IT industry, compromising its power to resist risk. When the IT industry declined, the market had no choice but to close down.

Globally, there have been 47 venture enterprise marketsl. They are mostly successful despite a few failure cased. Many of them were created around 2004. AIM and Kosdaq are among the most successful. In recapturing their experience and lessons learned, we realize the importance of institutional design in warding off risk. For example, German Neuer Market’s industrial coverage was too narrow. Thus in the Chinese venture board, we must broaden coverage. Furthermore the venture board must attract high-quality listing candidates. We have fully understood these issues in our institutional design.

In term of industrial coverage, we must realize that the enormity of Chinese domestic market. Since 2005, the Shenzhen Stock Exchange launched a nationwide SME-fostering program, which revealed to us the plenitude of listing resources. Thus a broad industrial coverage in the new venture board is fully justified.

And we must not set reasonable standards of admission. In some overseas markets, especially those established around 2000, profitability is not required and only 24 months of operational history qualifies for listing. Our rules are stricter and require reasonable thresholds.

In some overseas markets, regulation is overly flexible. In comparison, we exercise stricter regulation over the de facto controllers, corporate governance and information disclosure. For example, actions will be taken against misappropriation IPO proceeds to projects other than those disclosed in prospectus. These measures not only conform to the natural course of development for venture firms but also the practice of corporate governance in the present stage.

5.Question: China launched the venture board during the financial crisis, indicating its strong confidence in long-term development. Does the board help with measures in response to the crisis?

Answer: I think it helps. China was affected by the financial crisis, and it is of crucial significance to launch the board at this time. In particular the venture board actually lends SMEs a helping hand in time of trouble, instead of adding icings on the cake.

Globally speaking, in 1970s, when the oil crisis triggered recession in traditional sectors and slowed the world economy, Nasdaq came into being in the US. With its customization for venture companies, it catalyzed the formation of the Silicon Value and powered a new round of economic growth.

After the Asian financial crisis, Korea launched Kosdaq, which stimulated venture enterprises in the technology sector. It also helped regain investor confidence in Korea.

Taiwan Province initiated the policy of Technology Island after economic bubbles bust in 1994-1995. Taiwan’s venture board also stimulated unprecedented development in its technology sector and boosted industrial upgrade and economic recovery.

Therefore, as the premier said, confidence is more important than gold. At this point, the financial crisis is not yet over. Global economy will remain in the doldrums in quite a long time to come. The launch of the venture board will be a strong support for efforts to fight the financial crisis and promote economic recovery in China and worldwide.

6.Question: what is the position of the venture board in the multi-tier capital market?

Answer: The multi-tier capital market refers to the main board, SME board, the new market and OTC market. Actually SMEs board is a part of the main board. It has the same offering requirements as the main board.

The new market is more applicable for start-up businesses, as it requires enterprise to be profitable for only two consecutive years instead of three years on the mai board. With other conditions, the venture board is open to companies with only one-year profitability. The venture board’s functional positioning, risk profile and institutional designs are also different from the main board.

7.Question: what kind of experience does the SMEs board feed to the new market?

Answer: The SME Board opened in May 2007, and it has 273 listed companies, which have witnessed rapid development since listing. Some companies, however, have seen unusual growth, such as Suning Electronics. The company’s scale, speed of growth and quality would not be possible, had it not entered the capital market.

We can learn a lot from its development. Firstly we had a deeper understanding about the urgency and necessity to support SMEs through the capital market. Our research shows that development in the capital market lags behind SMEs’ financing need. Especially leading SMEs in their niche markets are in an urgent need for a financing mechanism to power their speedy growth. Some software firms may not lack funding, but they need capital incentives to attract and keep talent. The capital market can provide both financing and an incentive mechanism.

Secondly training for listing candidates will be deepened and advanced. A lot of effort is devoted in this regard. We have provided training to over 5000 companies, thanks to support of local governments and intermediaries.

Thirdly, the four years of operation have confirmed the importance of strict regulation. As most SMEs are private businesses that went through complex situations during growth and many are family businesses, we find them often struggling with internal control and corporate governance. For example, some SMEs do not even distinguish between corporate funds between family assets but there is too much discretion in using corporate funds.

In response to this situation, we initiated the specialized management mechanism for IPO proceeds account. Sponsoring institutions are made responsible for firsthand regulation over appropriation of the proceeds. We also exercise strong regulation over the practice of major shareholder embezzling corporate resources. Strong regulatory actions will be triggered whenever signs of such practices are identified.

In 2007, when the secondary stock market was bullish, we prohibited listed companies from trading shares. Some did not understand such regulation, arguing that the regulation may cause them to lose an opportunity to expand corporate wealth. However when the market later fell in deep adjustment, they became thankful for the regulation

8. Question:How is the SZSE’S preparation going on? And what is to be prepared next?

Answer: The SZSE has been preparing for the board since 2000. And since 2007, under the leadership and guidance of the China Securities Regulatory Commission, the SZSE established preparation department for the board and further analyzed patterns of development and experience of overseas market. We have also made thorough research on the conditions of domestic venture companies including their stage of development, the support they need and their risk profile.

The next step is to optimize what have been prepared. Relevant rules and regulations are to be released, training for investors, intermediaries and other involved institutions are to be deepened, fostering of listing sources to be continued and technology system to be optimized.

9. Question: As the promulgated IPO rule mentioned, the venture board should establish investor accession system, which should be compatible for investor’s risk-tolerance and fully disclose investment risk. Why should such a system be established?

Answer: Design and requirement of investor accession were set according to characteristics of the venture board as it has totally different risk and profit features from the main board. The venture board enjoys comparatively lower standard for IPO, which also means it is more risky. As the Chinese stock market is characterized by a large number of private investors as the mainstay of investing population, a threshold for admission is necessary. Investors are required to have certain risk-discerning ability and risk tolerance. Otherwise the investor may suffer unnecessary losses and intensify risk on the venture board.

10. Question: Are private investors allowed to participate in the board?

Answer: The threshold for private investors has not been decided yet. However there are many channels for investors to invest in the board. For an example, mutual funds set no threshold for private investors.

11.Question: What are the main risks of the new market that an investor should pay attention to?

Answer: firstly operational risks. Venture enterprises are less stable than main board companies in terms of operation.

Secondly, credit risk. Information asymmetry may be more acute than the main board.

Thirdly, sharp fluctuation of stock prices. As venture companies often feature small scale and equity size. Unstable operational performance may cause sharp fluctuation in stock prices.

Fourth, technology risk. Venture companies tend to have more technology risk as its technology has yet to reach maturity.

Fifth, risks from unsophisticated investing public.

Sixth, risks resulting from substandard services of intermediaries. We require intermediaries to offer their best effort and due diligence in their service. However some intermediaries may compromise on their ethical responsibilities, providing misleading financing statements, audit reports or legal opinions. In this regard, it is a challenge for sponsoring institutions to bring a truly qualified listing candidate to market. Thus intermediary risks are not negligible.

12. Question: What will the new market do in respect of investor training?

Answer: The Shenzhen Stock Exchange conducts the investor training in all aspects. The priority is to set up a core author group for investor training on the new market. First of all, we must understand what investors are interested in and what subsequent questions will emerge. We must be able to offer clear and to-the-point answers in a proactive manner. Therefore we will recruit experts from fund management companies, securities firms, venture capital firms and leading universities to write or lecture on rules of the new market, overseas venture markets, in order to improve professionalism and readability.

Secondly we will fully utilize communication channels such as the Internet, newspaper, TV, broadcast, books and hold a variety of events like knowledge contest, online dialogues, open house and onsite activities.

Thirdly, investor training will be timely and effective, easily accessible and understandable for investors in both content and means of delivery.

Fourth, training sessions on laws and regulations, business processes and risk control will be given to senior management and leaders of brokerage outlets in an effort to promote their service quality and capability. These training sessions will take the form of national tours.

Fifth we will launch national lecture tours of investor education. We plans to jointly hold professional and targeted investor training campaign in collaboration with branches of securities firms nationwide.

13. Question: How to prevent speculation during the first-day trading on the venture board?

Answer: First of all, let me explain the reason for heavy speculation on the first day of trading. As venture companies have relatively small share capital and small size of issuance, there is discrepancy between supply and demand.

Second, there is also discrepancy between offering price and trading price on the secondary market. From the exchange’s point of view, we must institutionalize measures against speculation. In fact we have already taken such measures on the SME board. When the stock price rises unusually high, the stock will be suspended from trading for 30 minutes to give traders an opportunity to cool off and decide whether such a high price is justifiable. At the same time, we will impose real-time monitoring on irregular quotations, especially frequent placing and cancellation of orders.

At the same time, market-oriented offering will be adopted. The China Securities Regulatory Commission is researching on reform on the new share offering system. On this basis, we will take further measures to prevent heavy speculation, especially at the very first day.

14. Question: How to enhance market supervision of the new market to prevent irregularities like market manipulation?

Answer: In terms of share price manipulation, we will raise the transparency. The pre-open mock trading will guide the investor in placing reasonable orders. And during the trading session, specialized staff will watch for price fluctuations and stay in direct communication and interaction with relevant listed companies. Once irregular price fluctuations are detected, listing disclosure department will be informed immediately to determine if the listed company in question has unfulfilled information disclosure responsibility.

We will also analyze the sources of orders that cause the unusual fluctuations and take appropriate actions. We have a real-time market surveillance system, listing disclosure department and membership department, which work in concert to engage in real-time all-around monitoring. If we detect signs of market manipulation, we will contain the practice and dissolve the emerging risk.

We will also analyze the source of orders that leads to the unusual movement of the share price and take corresponding measures.

15. Question: How to enhance the operational conformance and regulation of information disclosure for companies listed on the new market?

Answer: Firstly, corporate governance should be strengthened, including the responsibility of controlling shareholders and de facto controllers, enhancing the independence of independent director and the function of the audit committee.

Secondly, more timely information disclosure is required. The Internet will be utilized for real-time disclosure of information.

Thirdly, the disclosure criteria for provisional reports will be moderately adjusted in accordance with the characteristics of venture enterprises.

Fourthly, risk explanation will be more detailed, clarifying any question as it emerges in a timely manner.

Lastly, funds raised by listed companies must be used fairly

16.Question: How does the new market give full play to sponsoring institutions?

Answer: The sponsoring period will be prolonged. In this way, the sponsors’ responsibility of will be increased. In so doing, we will improve sponsoring quality at source. In this process we will strengthen sponsor’s continued guidance and counsel to listed company. The sponsor must conduct regular onsite inspection on the listed company as part of fulfillment its duty.

17. Question: What’s the delisting system of the new market?

Answer: The IPO rules for the new market require a delisting system compatible to the characteristics of the new market. The Shenzhen Stock Exchange plans to construct a multiple-criteria delisting standard including financial status, operational capability, business performance, distribution of equity ownership, assets scale, market liquidity, operational conformance and fulfillment of information disclosure.

18. Question: What’s your consideration on the board transfer mechanism of the new market?

Answer: Voluntary board transfer will be adopted for those eligible. We respect the listed company’s choice. However, we must realize that one of the reasons for failure in overseas venture markets is premature transfer. Some high-quality companies left before the venture board grew into a sustainable size. Thus these overseas venture boards lost momentum for future growth.. Therefore, we will take these issues into consideration and aim for sustainable development of the new market.

Source: SZSE, 08.04.2009

Filed under: Asia, China, Exchanges, News, Risk Management, , , , , ,

Deutsche Börse Opens Representative Office in Beijing

Following the opening of an office in Singapore last month, Deutsche Börse has added another Asia Pacific location to its on the ground presence with the opening of a new office in Beijing. The exchange operator indicates that this is part of its plan to expand its relationships within the Chinese market and it has appointed Jianhong Wu to head the office.

The exchange received approval by the China Securities Regulatory Commission (CSRC) to establish a representative office in Beijing on 26 September and has been working on finding an appropriate office head since that date. Accordingly, it selected Wu to become the chief representative officer for the Chinese market.

Deutsche Börse deputy CEO Andreas Preuss explains that the exchange is keen to become a partner within the Chinese market via the strengthening of its relationship with Chinese regulators and capital market institutions. With a view to this, the exchange operator has been developing relationships with domestic exchanges including the Shanghai Stock Exchange in 2004 and the Shenzhen Stock Exchange this year.

Among other activities, Deutsche Börse has also been organising road shows and IPO conferences with the aim of promoting stock exchange listings for domestic Chinese companies. Currently, 13 Chinese companies have opted for a primary listing at the Frankfurt Stock Exchange.

Source: A-Team Asian Markets 13.12.2008

Filed under: China, Exchanges, News, , , , , , , , , , , ,

Shenzhen Stock Exchange: The 7th SMEs Financing Forum Kicked Off Yesterday

The 7th Small and Medium-Sized Enterprises (SMEs) Forum jointly sponsored by the Ministry of Industry and Information, the National Development and Reform Commission, the Ministry of Science and Technology, the Shenzhen Municipal Government and the Shenzhen Stock Exchange (SZSE) was held yesterday in Shenzhen.

The forum discussed a series of topics such as new challenges the SMEs are facing under the global financial turmoil, how to boost investment, financing and innovation of SMEs, capital market’s role in deployment of innovative resources and improvement of market’s capability to serve economic entities with focus on serving economic entities and SMEs financing under global financial crisis and further study on concept of scientific development.

SHANG Fu Lin, Chairman of the China Securities Regulatory Commission addressed on the forum while several other principals also made speeches.

SHANG noted that China’s stock market is quite volatile amid the financial turmoil, which pushes us to keep exploring working rules of the market and deepening our knowledge on the market.

He also said that the capital market is a derivative of the opening-up reform and a significant part of socialism with Chinese characteristics and powerhouse for rapid and healthy development of national economy. The capital market has been acting more and more important role in social and economic development during the past a few decades. Listed companies aggregately accomplished business income of 8.6 trillion for the first three quarters of this year, equivalent to 42.8 percent of GDP figure for the same period. By the end of October, stock market has raised 2.3 trillion yuan while bonds raised 1.3 trillion. Root for the America-oriented crisis should be analyzed and experiences should be collected to advance supervision over securities market.

The internal rules of market evolvement should be acquired to launch new financial products tailored for economic development while sticking to basic situation and market order of China.

Expanding domestic consumption and advancement of economic development are priorities of current tasks. Acquisition of listed companies is encouraged to boost adjustment of industrial set-up. SMEs should be given more support, guiding and subsidies. The SMEs Board has been acting important roles in guiding and regulating SMEs since its establishment four years ago. Bonds market is to be developed to tackle difficulties for this industry. Regulations and compliance should be tightened to timely settle irregularities.

LIU Yan Hua, Deputy Minister of the Ministry of Science and Technology expressed that confidence is the key to integrate finance and technology for setting up pf a scientific and technological finance system in a bid to bolster growth of multi-layered capital market and growth board.

Given the current obstacles, policies on credit and taxation should be adjusted and SMEs credit guarantee system optimized to help SMEs, said OU Xin Qian, Deputy Minister of the Ministry of Industry and Information.

TU Guang Shao, Vice Mayor of Shanghai, pointed that financial connections between SMEs should be founded to factually fix fund-raising problems.

Several economists said that technological innovation has become the engine to sustainable development of Chinese economy under the current circumstance. The Growth Board is a substantial mean for enterprises to move towards innovation.

CHEN Dong Zheng, Director of the SZSE, chaired the forum and expressed that short-term capital cannot solve fundamental fund-raising problems, which urgently needs the capital market to bail them out. Capital market can shore up economic development under effective regulations. There has been a set of scrutiny system working over the current capital market and Chinese listed companies and securities intermediates are working properly who are eligible to further push the capital market move forward.

Roughly 500 people attended the forum including representatives from venture capital institutions, listed companies and correspondents.

Source: Mondovision / Shenzhen 2.11.2008

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