The official merger of SZSE’s Main Board and SME Board (hereinafter referred to as the “merger”) kicked off on April 6, when Truelove, Sino-Agri Union and Suzhou Huaya Intelligence Technology Co., Ltd. launched IPOs and went public on SZSE’s Main Board, marking the successful implementation of another major reform in capital market after the success in the ChiNext Board reform and registration-based IPO system. It is another significant achievement of the capital market in supporting the development of the Guangdong-Hong Kong-Macao Greater Bay Area and Pilot Demonstration Zone of Socialism with Chinese Characteristics.
A practice to thoroughly implement the major decisions and plans made by the CPC Central Committee and the State Council, merger of the two boards in high quality is an important measure to deepen the supply-side structural reform of the financial sector with alignment with the guiding principle of the fifth plenary session of the 19th CPC Central Committee, an important arrangement to comprehensively deepen the reform of the capital market and give full play to the pivotal function of the capital market. It is of great significance to enhance the capital market’s ability to serve the real economy.
SZSE has always adhered to the principle of reform and innovation since its establishment. Persistent in strengthening the foundation of markets, SZSE is committed to refining market functions, developing a multi-tiered market system with characteristics to better serve the national strategy and real economy. SZSE’s Main Board has vigorously devoted in supporting the reform of state-owned enterprises, under which high-quality enterprises realized leapfrog in development with a number of industry leaders emerging, transforming into a gathering of market-based blue chips. The SME Board was created in line with the plans of the State Council and the China Securities Regulatory Commission (CSRC) in 2004. It has provided a new channel for SME enterprises and private enterprises to access the capital market and conditions and experience for the establishment of the ChiNext Board. It has also played an important role in optimizing the economic structure, transforming the growth drivers and building a modern economic system.
The merger is not only a practical need to comply with the law of market development, but also an internal requirement for the creation of a concise and clear market system. On February 5, 2021, SZSE officially launched the merger upon the approval of the CSRC. Under the powerful leadership of the CSRC, SZSE thoroughly implemented the guidelines of “system building, non-intervention, and zero tolerance” with the cooperation of all market participants. SZSE kept following the requirements of “standing in awe of the market, rule of law, professionalism and risks, and obtaining support from various parties”, the working ideas of being “open-minded, transparent, honest and impartial”, as well as the overall arrangement of “Two Unification and Four Unchanged” (making business rules and mode of operation supervision unified, and keeping issuance and listing conditions, investor’s threshold, trading mechanism, and code and abbreviation of securities unchanged). Within two months, SZSE integrated relevant policies and regulations and revised the index compiling plan. Meanwhile, SZSE coordinated the technical transformation across the market and adjusted the division of its internal organization as well as the model of its regulatory operation. Overall, SZSE completed all the preparations in a smooth and orderly manner.
After the merger, there were more than 1,470 listed companies on the Main Board with the total market cap exceeding CNY 20 trillion. SZSE is forming a market pattern with Main Board and ChiNext Board as the main body. With the threshold of issuance and listing unchanged, the Main Board of SZSE focuses on supporting the relatively mature enterprises in financing and development. While the ChiNext Board mainly offers services to high-tech enterprises and growth enterprises engaging in innovation and entrepreneurship, focusing on companies of innovation, creativity and originality, and traditional industries that are deeply integrated with new technologies, new industries, new business forms and new models. With a more concise market structure, more distinctive characteristics and a clearer position, SZSE is able to provide enterprises in different development stages and of different types with financing services to further improve the energy and flexibility of the capital market, serve the strategy of innovation-driven development better, and assist in the high-quality development through innovation.
From a new starting point, SZSE will continue to uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guide and earnestly implement the guiding principle of the fifth plenary session of the 19th CPC Central Committee and the Central Economic Work Conference. SZSE will properly focus on the new development stage, thoroughly implement the new development philosophy and proactively facilitate the formation of the new development pattern. SZSE will persistently serve the real economy and play an active role in the development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Pilot Demonstration Zone of Socialism with Chinese Characteristics. SZSE will continue to refine fundamental policies, ceaselessly improve the quality and efficiency of the market, give full play to the function of the market and strive to build itself into a premium innovative capital center and a world-class exchange. SZSE will celebrate the 100th anniversary of the founding of the CPC with outstanding achievements.