2022 was a critical year in the history of both the CPC and China. The 20th CPC National Congress was successfully held, which steered the course of the CPC and the country in the new era. The CPC Central Committee, with Comrade Xi Jinping at the core, has steered a steady course at the helm, and led the whole Party and the Chinese people of all ethnic groups in accomplishing the arduous tasks of reform, development, and stabilization. With steadily improved quality of development, fruitful results in scientific and technological innovation, deepened reform and opening up in an all-round way, and stable economic and social situation, China has taken solid steps forward on the new journey toward building a modern socialist country in all respects.

Bearing in mind the big picture, we forged ahead with even greater resolve. Over the past year, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Shenzhen Stock Exchange (SZSE) has thoroughly studied, publicized, and implemented the spirit of the 20th CPC National Congress, and resolutely carried out the decisions and plans of the CPC Central Committee and the State Council. Under the leadership of China Securities Regulatory Commission (CSRC), SZSE has fully and faithfully apply the new development philosophy on all fronts. We served the real economy, deepened market reform, prevented and mitigated risks, promoted high-quality development, and strived to build a world-class exchange featuring a quality innovation capital center, with positive results achieved in all our work.

In 2022, we strengthened political guidance and the Party’s overall leadership. We promptly carried out learning, publicizing and implementing the spirit of the 20th CPC National Congress, and made solid, consistent and sustained efforts in the follow-up rectification of central political inspection. We further strengthened the Party politically, and reinforced and expanded the achievements made in studying the history of the Party. We developed a deep understanding of the decisive significance of the “Two Affirmations” (the establishment of both Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era), strengthened the “Four Consciousnesses” (maintaining political integrity, thinking in big-picture terms, following the leadership core, and keeping in alignment), bolstered the “Four Confidences” (confidence in the path, theory, political system and culture of socialism with Chinese characteristics), and ensured the “Two Upholds” (upholding General Secretary Xi Jinping’s core position in both the Party Central Committee and the Party as a whole, and upholding the Party Central Committee’s authority and its centralized unified leadership) . We remained committed to our path to a modern exchange with Chinese characteristics.

In 2022, bearing in mind the most fundamental interests of the country, we actively served national strategies. With our focus on supporting technology and innovation, 89% of the IPO applications received in the year were from enterprises in strategic emerging industries. We supported in accumulation over 1000 tech companies in raising funds through intellectual property (IP) securitization products, and set up the SZSE Technology and IP Exchange, a one-stop service platform that connects the technology market with the capital market. We also strongly supported green development. We published the CNI ESG Ratings Methodology to guide listed companies in practicing low-carbon and sustainable development philosophies, further diversified green financial products and, as a result, the amount of green bond issuance increased by 61% year-on-year. We contributed to rural revitalization and supported modern agricultural industries. We witnessed 11 enterprises engaged in rural revitalization and modern agriculture list on SZSE, and increased direct investment and attracted financing for targeted counties to further consolidate the achievements of poverty alleviation. Moreover, we helped revitalize existing assets, accelerated the regular issuance of infrastructure REITs, expanded the size and scope of the REITs market, and actively explored new investment models for infrastructure construction.

In 2022, we advanced reform and strived to create new advantages for development. We implemented the outline for building “a world-class exchange featuring a quality innovation capital center” and SZSE’s strategic initiative for development in the 14th Five-year Plan period, and put forward the strategic initiative of the “Eight Shapings”. We maintained the well-functioning of the registration-based IPO system of the ChiNext Market, and reviewed and approved 208 IPOs, 119 refinancing projects, and 8 M&A deals. In 2022, there were 150 new listings on the ChiNext Market, which brought the total number of ChiNext-listed companies to more than 1200. With concerted efforts in improving the quality of listed companies with focus on existing companies, leading companies and listing candidates, we promoted the fast growth of a number of industry “benchmark” and “chain leading” listed companies. We stepped up efforts in product innovation and launched ETF products related to high-end equipment, machine tools, green power, and policy bank bonds, released ESG index series, new Chinese product index and the CNI Social Assistance 100 Index. We listed ChiNext ETF Option, CSI 500 ETF Option and SZSE 100 ETF Option, making a breakthrough in the first listing of a single-market ETF option targeting at SZSE market. Furthermore, SZSE steadily expanded opening-up. We successfully launched depository receipts (DRs) under the Stock Connect Scheme, with 6 SZSE-listed companies issued GDRs in Switzerland through SZSE-Swiss Exchange Connect, launched the inclusion of ETF in Shenzhen-Hong Kong Stock Connect, rolled out SZSE-SGX ETF Product Link, unveiled the pilot Greater Bay Area Bond Platform, and provided direct access for overseas institutional investors to SZSE’s bond market, so as to promote high-quality development through high-level opening-up.

In 2022, we gave play to our role of financing to help stabilize the economy. Throughout the year, we maintained direct financing at a fairly high level, and provided services to more than 2700 enterprises. We introduced 16 practical measures to support enterprise development and serve the real economy, and exempted listed companies, bonds, and funds from relevant fees by RMB 120 million in the whole year. We stayed firm in consolidating and developing the public sector of the economy, and remained steadfast in encouraging, supporting and guiding the development of the non-public sector. We implemented the special work plan for the reform of state-owned enterprises, and supported state-owned enterprises in playing their stabilizing role in the economy. We encouraged private enterprises to focus on their principal business, stimulated their vitality, and helped ease their bottlenecks and cut the cost in financing.

In 2022, we stuck to our main duties to ensure market safety. We gave high priority to risk control, considering worst-case and extreme scenarios, strengthening risk prevention and early warning, and timely mitigating risks to ensure the safe and stable operation of the market. We improved the regulatory rule system with focus on enhancing the quality and efficiency of supervision and review. We reinforced our technology-assisted supervision system, and cracked down on violations of laws or regulations to protect the legitimate rights and interests of investors. We continued to reduce the risks of listed companies, improved the full-chain prevention and control mechanism for bond-related risks, and helped reduce risks effectively in key areas.

All these achievements cannot be accomplished without the joint efforts of all relevant parties in the market. On this occasion, we would like to express our heartfelt thanks to all the market participants, relevant organizations and people from all walks of life for their long-time attention and support for the reform and development of SZSE.

Making overall progress and building momentum based on our past achievements we will forge ahead continuously in the new year. The year 2023 is the first year to fully implement the spirit of the 20th CPC National Congress. SZSE will comprehensively study, understand, and carry out the spirit of the 20th CPC National Congress and the Central Economic Work Conference, prioritize stability while pursuing progress, think in a systematic way, and uphold fundamental principles and break new ground. Aimed at gathering innovation capital and stimulating growth momentum, SZSE will accelerate the building of a quality innovation capital center and a world-class exchange, and support the new development pattern and high-quality development with great passion and new actions.

Firstly, we will steer the advancement of our endeavors with the guidance of Party building. We will prioritize the Party building, equip our mind with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, carry forward the great founding spirit of the Party, keep in mind that it is imperative that all of us in the Party never forget our original aspiration and founding mission, that we always stay modest, prudent and hard-working, and that we have the courage and ability to carry on our fight. We will bear in mind the Party’s leadership in all the processes of our work, With the spirit of hard work, sense of responsibility and constant vigilance, we will make every endeavor in advancing reform, development and stabilization. We will continue to deepen and substantiate the follow-up rectification tasks of the central political inspection, consolidate the results of the inspection and rectification to further advance development and governance of our Exchange, making it a new start for SZSE to exercise full and rigorous Party self-governance and achieve high-quality development.

Secondly, we will deepen reform and expand opening-up in a progressive manner. We will speed up the implementation of the outline for building “a world-class exchange featuring a quality innovation capital center” and carry out the strategic initiative of “Eight Shapings” in three steps. We will deepen the reform of the registration-based IPO system in the stock market, consolidate the reform outcomes of the registration-based IPO system of the ChiNext Market, further enhance the systems and mechanisms for listing, M&A and refinancing, and vigorously develop the bond, fund, and derivative markets. Moreover, we will focus our support on technological independence, create inclusive and efficient innovation-supported market segments and product systems, continuously improve the market functions of the Exchange, and boost the virtuous cycle of technology, industry and finance. We will put into practice a new round of action plans to improve the quality of listed companies so as to cement the foundation for the sustainable development of the capital market. Based in the Greater Bay Area and with a global perspective, we will steadily promote opening-up at a higher level and explore new models for cross-border connectivity.

Thirdly, we will serve the real economy and support innovation with pragmatic measures. We will align our supervision services with the policies of stabilizing growth and expanding domestic demand, increase the level of direct financing through the issuance of both equities and bonds, and give better play to the role of infrastructure REITs in revitalizing idle assets and expanding investment. We will focus on areas including advanced manufacturing, green and low-carbon development, and digital economy, and channel social capital into key areas and weak links. We will create capital and service chains centered around innovation and industrial chains, and leverage SZSE Technology and IP Exchange, various service platforms and all local service networks to help state-owned enterprises sharpen their competitive edge, support the growth and development of private enterprises, and promote the compliant and healthy development of platform enterprises.

Fourthly, we will prevent risks and ensure stable operation with the principles of stability. We will intensify risk monitoring and analysis, highlight risk prevention and control in key areas, and comprehensively improve our risk prevention and control capability. We will facilitate the launch of relevant policies and measures, and actively support the stable development of the real estate market. We will strengthen technology operation and maintenance, continuously enhance the security, stability, and consistency of system operation, guarantee the safe and smooth operation of the market, and to ensure that no systemic risks arise.

Our original aspiration lights up our road forward like a torch and our mission remains as steadfast as a rock. In the new year, we will rally more closely around the Central Committee with Comrade Xi Jinping at the core. Under the leadership of the CSRC, we will center on the major policies of economic work. With unyielding persistence and fearless determination, we will reinforce our confidence, work hard and forge ahead, and perform our duties in a down-to-earth manner. We will continue to open new grounds in the reform, development and stabilization of the Exchange, help boost the overall economy, and contribute to the efforts of making a good start in building a modern socialist country in all respects.