Pool the Strength of Members to Win the Tough Battle in Preventing and Addressing Risks

date: 2018-4-12

--SZSE 4th Council Convenes the 4th Meeting

The 4th Meeting of the SZSE 4th Council was convened on the morning of April 11, 2018, which studied and deliberated the Report on the Preparation of the 2018 SZSE General Meeting of Members and gave instructions to relevant work. It was decided at the meeting that the 2018 General Meeting of Members would be held offsite from April 16 to April 20. The Council Work Report, the General Manager Work Report,  the Financial Budget Report and the Shenzhen Stock Exchange Constitution (Revised Draft) were deliberated and approved at the meeting and will be submitted to the General Meeting of Members for deliberation. Other matters were also studied at the meeting.

 

It was concluded that the 2018 SZSE General Meeting of Members, as the first general meeting of members following the successful convening of the 19th CPC National Congress and the implementation of the revised Measures for the Administration of Stock Exchanges, is of great significance in multiple aspects: namely, organizing, mobilizing, and guiding the members to conduct in-depth study of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; implementing the relevant decisions and arrangements of the CPC Central Committee; and facilitating SZSE’s efforts in enhancing the CPC leadership, strengthening frontline supervision, preventing and addressing risks, and improving its governance and operational level. The normal convening of the 2018 General Meeting of Members is a crucial practice for improving the governance structure of stock exchanges and enhancing their self-regulation. It is conducive to practicing the members’ right to know, right to participate, right to vote, and right to supervise. To implement the spirit of the CPC Central Committee’s eight-point frugality code, the General Meeting of Members aims to streamline meetings, improve efficiency, save social costs, and fully leverage modern technologies. Held offsite, the Meeting introduced online voting for the first time, which is important exploration and innovation on the form of the Meeting.

 

It was emphasized that stock exchanges, as the undertakings set up by CPC and the state, should unwaveringly enhance CPC’s absolute leadership. The 2018 General Meeting of Members boasted distinct themes and firm stand, conducted in-depth study of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and implemented the guiding principles of the 19th CPC National Congress, the Central Economic Work Conference and the National Financial Work Conference. By focusing on, facilitating, and implementing the three major tasks in financial work, the Meeting has highlighted CPC’s leadership, strengthened the exchange’s responsibilities, actively fulfilled its responsibility, and united and led the members to implement the decisions and arrangements of the CPC Central Committee in building world-class investment banks, a world leading stock exchange and an internationally competitive capital market through consensus and joint efforts.

 

It was indicated that preventing and addressing financial risks is a major barrier that must be overcome to achieve quality development. We should understand the importance of preventing and addressing financial risks from the strategic perspective of realizing the “Two Centenary Goals” and always put such prevention and resolution in a prominent position. We should improve our political stand, seek progress while maintaining stability, strengthen the bottom line thinking, and implement risk responsibility. Stock exchanges and members are in the frontline in preventing capital market risks. SZSE should take the opportunity of the revision and implementation of the Measures for the Administration of Stock Exchanges and Shenzhen Stock Exchange Constitution, and mobilize and lead the members to making strenuous efforts in constructing institutional mechanisms and fixing institutional weakness, thereby winning the tough battle in preventing and addressing risks through radical risk prevention and the important defense line yet to be established.

 

It was also highlighted at the meeting that the nature of finance is to serve the real economy. As a core hub and important platform for the capital market, an exchange should, in accordance with the requirement of quality development, implement new development concept, earnestly serve the national strategies including supply-side structural reform, innovation-driven development and accurate poverty alleviation, exert its function in resource allocation, strengthen cultivation services and enrich product tools so as to truly improve the capital market’s capacity of serving the real economy.

 

It was said at the meeting that 2018 marks the 40th anniversary of the reform and opening-up and that SZSE, standing at the frontier of the nation’s opening up and reform, shall shoulder its historical responsibility firmly, enlarge its opening up scale and deepen reforms in key fields by adopting more substantial measures in a greater way. It shall also further perfect the multi-tiered capital market, deepen the ChiNext reform, faciliate the smooth implementation of pilot projects on innovative enterprises’ domestic share offering or depositary receipts issuance, and enhance its support towards new technologies, new industries, new business formats and new patterns. Besides, SZSE shall positively provide service for the “Belt and Road” Initiative, accelerate its internationalization process, develop cross-border equity cooperation and expand interconnection collaboration to improve the cross-border capital service mechanism and forge a world-leading innovative capital formation center with full strength.

 

The Shenzhen Stock Exchange Constitution is the fundamental and programmatic document for SZSE’s governance; hence, the amendments thereto would play an important role in SZSE’s fully strengthening the CPC leadership, optimizing its governance structure and reinforcing its front-line supervision duties. This would also provide an institutional guarantee for further carrying out the “membership supervision-based” transaction behavior supervision model and fully protecting the legitimate rights and interests of relevant market participants. Moreover, SZSE will smooth the institutional take over, truly put into practice the new clauses and requirements of the Shenzhen Stock Exchange Constitution and the Measures for the Administration of Stock Exchanges in every steps of its work, enlarge the publicity and promotion of the Constitution and guide vast members in comprehending, acknowledging and obeying the Constitution, thus increasing coordination and collaboration, forging a joint force and creating benign atmosphere.

 

At last, it was emphasized at the meeting that the capital market currently operates on a yet-to-be-secure foundation, and therefore is exposed to a greater risks of externality impact under the multiple factors both at home and abroad. Accordingly, SZSE shall stick to strict and comprehensive law-based supervision and fulfill its front-line supervision responsibilities honestly, strengthen its supervision over transactions and stress the prevention of the impact from uncertain factors on capital market so as to firmly hold on to the frontier of supervision, fully maintain the market order and protect the legitimate rights and interests of investors, especially the minority.