On 10 April 2020, Shenzhen Stock Exchange (“SZSE”) signed a strategic cooperation agreement with Fujian Provincial Government through videoconferencing. It was a specific measure taken by both sides to earnestly implement the decisions of preventing the pandemic and facilitating economic and social development made by the CPC Central Committee and the State Council, and to improve market allocation of components market, increase the quality of listed companies and step up the development of new Fujian in the new era as well. It was an additional achievement made by SZSE to serve as the hub of capital market and innovative capital and to boost the high-quality development of regional economy. SZSE’s Party Secretary and Chairman Wang Jianjun, and leading Party member and Deputy Governor of Fujian Province Guo Ningning participated in the agreement signing activity.
In recent years, the economy of Fujian Province has been growing steadily, with the supply-side structural reform kept deepening. There are three leading industries, namely machinery, electronic information and petrochemical, and strategic emerging industries on the rise. Meanwhile, Fujian is continuously strengthening the building of its capital market and utilizing the direct financing function of the capital market, to accelerate the replacement of old growth drivers with new ones, promote industrial upgrading and support innovative economic development. By the end of March 2020, there were 84 SZSE-listed companies in Fujian Province in total, ranked No.6 in China, with a total market value of CNY 848.634 billion, accumulated equity financing of CNY 163.057 billion, and the financing of fixed-income products issued by various institutions amounted to CNY 167.58 billion.
SZSE has been serving Shenzhen’s capital market for a long time. There has been close communication and sound partnership between both sides, and phased milestones have been made in many cooperative projects. In 2019, under the support of provincial and municipal departments and the local securities regulatory bureaus, SZSE successfully organized the “Fujian Service Week of Capital Market”, which carried out 12 cultivation activities that reached nearly 600 pre-IPO companies, to support the upgrading of Fujian capital market. According to this Agreement, both sides will deepen the cooperation and increase investment in nurturing creative backup enterprises, listed companies regulation and coordination, fix-income and fund products cooperation, regional equity market building, investment and financing roadshow matching, technology and financial cooperation and technological achievement transformation, investors education and talents communication and training. These moves are aimed to support the implementation of new development philosophy in Fujian, promote industrial upgrading, and provide stronger support of capital market services for the development of a new Fujian.
Since the year beginning, SZSE has been giving full play to its leading technological advantages by utilizing its cloud online services to work with the local government for market nurturing and implement the pandemic prevention and market reform and development at the same time with assurance. Next, SZSE will, following the unified plan of CSRC and centering on the fundamental task of “let financial sector serve the real economy”, serve as a hub of capital market, meet national strategic and local requirements, and expand the depth and width of “localized” services. SZSE will enrich innovative service models, optimize resource allocation functions, improve the long-acting market nurturing mechanism, comprehensively increase the quality of listed companies and boost high quality development of the economy.