20 Dec 2019
On the occasion of its 29th anniversary, the Shanghai Stock Exchange (SSE) launches a new English official website (http://english.sse.com.cn) to further help international investors know and involve into the SSE market. The new website, in response to the needs of international investors, has optimized the column design, added more contents and improved the timeliness of information, in a bid to provide more express, comprehensive and timely information service for international investors. In the future, the new website, as an important base for the SSE international promotion work, will continuously give a panorama of the latest SSE market to global investors and show a brand new cyber-image compatible with the goal of the SSE: building a world leading exchange.
Notice on Closing Arrangements for Some Holidays and Festivals in 2020
Date: 2019-12-26
To all market participants,
According to the Notice on Market Holidays and Closing Arrangements for Some Holidays and Festivals in 2020 (CSRC General Office [2019] No.70) issued by the China Securities Regulatory Commission (CSRC), the relevant market closing arrangements for some holidays and festivals in 2020 are as follows:
I. Closing Arrangements
i. New Year’s Day: The market will be closed on January 1 (Wednesday), and will open as usual from January 2 (Thursday).
ii. Spring Festival: The market will be closed from January 24 (Friday) to January 30 (Thursday), and will open as usual from January 31 (Friday). And the market will be closed on January 19 (Sunday) and February 1 (Saturday) as they fall on the weekend.
iii. Qingming Festival: The market will be closed from April 4 (Saturday) to April 6 (Monday), and will open as usual from April 7 (Tuesday).
iv. International Labor Day: The market will be closed from May 1 (Monday) to May 5 (Tuesday), and will open as usual from May 6 (Wednesday). And the market will be closed on April 26 (Sunday) and May 9 (Saturday) as they fall on the weekend.
v. Dragon Boat Festival: The market will be closed from June 25 (Thursday) to June 27 (Saturday), and will open as usual from June 29 (Monday). It will be closed on June 28 (Sunday) as it falls on the weekend.
vi. Mid-Autumn Festival and National Day: The market will be closed from October 1 (Thursday) to October 8 (Thursday), and will open as usual from October 9 (Friday). And the market will be closed on September 27 (Sunday) and October 9 (Saturday) as they fall on the weekend.
II. The clearing and delivery during holidays and festivals shall be conducted in accordance with the arrangement of China Securities Depository and Clearing Corporation Limited.
XPCC Bond Debuts on the Exchange Market SZSE Achieves Notable Results in Serving the Issuance of Local Government Bonds in 2019
Date: 2019-12-23
On December 19, Xinjiang Production and Construction Corps (“XPCC” hereinafter) government bond debuted on the exchange market and succeeded in its open issue by tender on SZSE. This is an important measure for SZSE to study and implement the guiding principles of the Central Economic Work Conference and to support improvement of quality and performance with proactive fiscal policy. It is also another successful case to help broaden direct financing channels and serve the high-quality economic development of the border areas.
The XPCC bond includes one tranche of general bond and three tranches of special bonds, totalling a scale of CNY20.666 billion. The funds raised are mainly used for the expenditure of projects such as agriculture, forestry, water conservancy, rural public services, ecological construction and environmental protection, science, education, culture, health, government subsidized housing and municipal infrastructure within the jurisdiction of XPCC. It is conducive to upgrading infrastructure in the border areas, promoting the development of people’s wellbeing, and improving the living standard of people. The result of bond issue is: a total of CNY1.666 billion was the scale of 7-year general bond (interest rate of 3.41%), a total of CNY1.066 billion for 7-year special bond (interest rate of 3.41%), a total of CNY1.927 billion for 20-year special bond (interest rate of 3.78%), a total of CNY16.007 billion for 30-year special bond (interest rate of 4.05%). The subscription indicates that 32 financial institutions in the underwriting group have actively bid for a total of CNY163.72 billion. Among them, the total bid amount from the members of the underwriting group of securities companies reached CNY96.85 billion. They won the bid of CNY6.42 billion, accounting for 31.07% of the issuing scale.
In 2019, SZSE made continuous headway into the reform and development of bond market and focused on improving the service of municipal bond issuance. All this has produced remarkable results. First, SZSE further expanded its service coverage to contribute to the steady growth of the local economy. So far, SZSE has issued government bonds for 32 issuers in the way of issue by tender, with an accumulated issuance volume of nearly CNY1.8 trillion. In 2019, CNY881.7 billion of bonds was issued, involving 12 new issuers. The influence of the market of SZSE-listed municipal bonds is growing. Second, SZSE established a whole-process service system for special bonds to support the market-oriented reform of municipal bonds. According to the needs of issuing bodies, SZSE sent assistant personnel to cooperate with the field selection and evaluation of service projects in the issuance process of government special bonds with self-balancing project income and project financing. What’s more, we also provided market-oriented operation suggestions for issuers according to the experience on corporate credit bonds. Our integrated service capability has been fully recognized by the market participants. Third, SZSE intensified efforts on the building of buyer’s market to unleash investors’ vitality in the market. In 2019, SZSE has listened to the front-line opinions of the market from banks, fund companies, securities firms, insurance companies and other municipal bond investment institutions, so as to explore new ways to upgrade the mechanism for municipal bond investment and trading, and promote the improvement of the maturity types of municipal bonds. Fourth, SZSE pushed forward the innovation in government bonds and the launch of ETF products to enrich product supply. SZSE made further progress in exploring new ways of issuing municipal bonds such as serial issue, option bonds issue, rolling-over issue, and super long-term maturity issue. We have launched the first batch of the Guangdong-Hong Kong-Macao Greater Bay Area special municipal bonds to better support the building of the Greater Bay Area and the Pilot Demonstration Area. We actively explored new municipal bond ETF products to boost the liquidity of municipal bond market, thus resulting in the issuance and list of the first 5-year municipal bond ETF.
Next, SZSE will speed up the implementation of the task in deepening sweeping reforms of capital market, increase support for areas in line with national strategies and industrial policies, and deepen all-round cooperation with local governments. In addition, we will also provide enriched product systems, higher market efficiency and upgraded services. SZSE will further bring the functions and advantages of the exchange bond market in serving the real economy into full play, and pursue progress in high-quality development of the exchange bond market.
CSI 300 ETF Option Successfully Listed on SZSE SZSE Takes Another Significant Step towards a World-Class Stock Exchange
Date: 2019-12-25
On 23 December 2019, SZSE reached its new milestone of reform and development. Its first derivative instrument – CSI 300 ETF Option (object of trading: Harvest CSI 300 ETF, code: 159919) was successfully listed for trading on SZSE, representing a major breakthrough in the product system building of SZSE. It marks the great progress made in the capital market to support Shenzhen in building a pilot demonstration area of socialism with Chinese characteristics. It marks the significant results achieved in the financial market development in the Guangdong-Hong Kong-Macao Greater Bay Area. It also marks another important step taken by SZSE to become a world-leading innovation capital formation center and a world-class stock exchange. Vice Chairman of CSRC Li Chao, Secretary of CPC Shenzhen Municipal Committee Wang Weizhong, Mayor of Shenzhen Chen Rugui and President & CEO of SZSE Wang Jianjun attended the listing ceremony and rang the bell for CSI 300 ETF Option together. Vice Chairman of CSRC Li Chao, Mayor of Shenzhen Chen Rugui and President & CEO of SZSE Wang Jianjun addressed the listing ceremony respectively. A total of about 150 officials and guests from the CPC Shenzhen Municipal Committee and Shenzhen Municipal People’s Government, Guangdong Provincial Financial Supervisory Bureau, the CSRC system, central and Shenzhen-based financial institutions, foreign exchanges, relevant marketing institutions, colleges and universities and news media attended the listing ceremony to witness this historic moment.
Li Chao said that, the launch of CSI 300 ETF Option by SZSE is an important measure for CSRC to implement the plans of the CPC Central Committee and the State Council and the sweeping reforms of the capital market. It is conductive to further upgrading the multi-tiered capital market product system, attracting more long-term capital into the market and expanding the opening up of the capital market. To develop the stock option market, it is necessary to better serve the real economy and fully leverage the positive role of stock options in risk management. It is necessary to maintain stable development and always put risk prevention in the first place. It is necessary to strengthen regulation and safeguard lawful rights and interests of investors. It is also necessary to widely publicize and guide investors to be rational in trading. Next, CSRC will strengthen communication with the CPC Shenzhen Municipal Committee and Shenzhen Municipal People’s Government, jointly promote capital market reforms, and support Shenzhen in building a pilot demonstration area of socialism with Chinese characteristics.
According to Chen Rugui, if Shenzhen wants to push forward its building of a pilot demonstration area at a high level and high quality, and better play its role of core engine in the Guangdong-Hong Kong-Macao Greater Bay Area, it should be equipped with international financial services, innovative financial products and diversified financial business. The official listing of CSI 300 ETF Option on SZSE is a significant step of CSRC and SZSE to support Shenzhen in building a pilot demonstration area, and is of great significance for Shenzhen to speed up its construction of a world-leading financial center. With the support and guidance of CSRC, Shenzhen will leverage the advantages of SZSE as a multi-tiered capital market platform, and strive to build itself into a world-class international finance center, venture capital center, innovation capital center and modern service center. Shenzhen will also provide strong financial support in the building of the pilot demonstration area and explore new and better reforms and innovations for China’s financial sector.
Wang Jianjun said that the listing of CSI 300 ETF Option is of great significance for SZSE to enhance its function as the “trinity” platform of direct financing, asset allocation and risk management, which adds new drives to the reform and development of SZSE. In line with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, SZSE will stay true to its founding mission. It will deepen the supply-side structural reform of the financial sector and keep pursuing progress while ensuring stability as underlined in the fourth plenary session of the 19th CPC Central Committee and the Central Economic Work Conference. It will also adhere to the work requirements of “the four awes (stand in awe of the market, rule of law, professionalism and risks) and one joint force (The capital market’s development needs all the efforts made by all sides)”. Under the leadership of CSRC, SZSE will enhance its capacity to serve technological innovation and the real economy to strive to build itself into a world-class exchange matching with the pilot demonstration area.
Stock options first started trading in 1973, and have become a mature risk management instrument in the global capital market four decades later. As an important type of stock options, ETF option grows rapidly with ETFs, with its compound annual growth rate of global trading volume exceeding 25% since 2005. ETF option will work together with ETFs to propel the development of indexing investment.
CSI 300 ETF Option held steady on SZSE on the first trading day and kept smooth operation. Better linkage between futures and spot markets brings more rational investors. There are 72 CSI 300 ETF Option contracts officially listed and traded, with a total daily turnover of 140,100, the option premium turnover of CNY101 million, the closing face value of CNY5,758 million, and an open interest of 71,900.
XPCC Bond Debuts on the Exchange Market SZSE Achieves Notable Results in Serving the Issuance of Local Government Bonds in 2019
Date: 2019-12-23
On December 19, Xinjiang Production and Construction Corps (“XPCC” hereinafter) government bond debuted on the exchange market and succeeded in its open issue by tender on SZSE. This is an important measure for SZSE to study and implement the guiding principles of the Central Economic Work Conference and to support improvement of quality and performance with proactive fiscal policy. It is also another successful case to help broaden direct financing channels and serve the high-quality economic development of the border areas.
The XPCC bond includes one tranche of general bond and three tranches of special bonds, totalling a scale of CNY20.666 billion. The funds raised are mainly used for the expenditure of projects such as agriculture, forestry, water conservancy, rural public services, ecological construction and environmental protection, science, education, culture, health, government subsidized housing and municipal infrastructure within the jurisdiction of XPCC. It is conducive to upgrading infrastructure in the border areas, promoting the development of people’s wellbeing, and improving the living standard of people. The result of bond issue is: a total of CNY1.666 billion was the scale of 7-year general bond (interest rate of 3.41%), a total of CNY1.066 billion for 7-year special bond (interest rate of 3.41%), a total of CNY1.927 billion for 20-year special bond (interest rate of 3.78%), a total of CNY16.007 billion for 30-year special bond (interest rate of 4.05%). The subscription indicates that 32 financial institutions in the underwriting group have actively bid for a total of CNY163.72 billion. Among them, the total bid amount from the members of the underwriting group of securities companies reached CNY96.85 billion. They won the bid of CNY6.42 billion, accounting for 31.07% of the issuing scale.
In 2019, SZSE made continuous headway into the reform and development of bond market and focused on improving the service of municipal bond issuance. All this has produced remarkable results. First, SZSE further expanded its service coverage to contribute to the steady growth of the local economy. So far, SZSE has issued government bonds for 32 issuers in the way of issue by tender, with an accumulated issuance volume of nearly CNY1.8 trillion. In 2019, CNY881.7 billion of bonds was issued, involving 12 new issuers. The influence of the market of SZSE-listed municipal bonds is growing. Second, SZSE established a whole-process service system for special bonds to support the market-oriented reform of municipal bonds. According to the needs of issuing bodies, SZSE sent assistant personnel to cooperate with the field selection and evaluation of service projects in the issuance process of government special bonds with self-balancing project income and project financing. What’s more, we also provided market-oriented operation suggestions for issuers according to the experience on corporate credit bonds. Our integrated service capability has been fully recognized by the market participants. Third, SZSE intensified efforts on the building of buyer’s market to unleash investors’ vitality in the market. In 2019, SZSE has listened to the front-line opinions of the market from banks, fund companies, securities firms, insurance companies and other municipal bond investment institutions, so as to explore new ways to upgrade the mechanism for municipal bond investment and trading, and promote the improvement of the maturity types of municipal bonds. Fourth, SZSE pushed forward the innovation in government bonds and the launch of ETF products to enrich product supply. SZSE made further progress in exploring new ways of issuing municipal bonds such as serial issue, option bonds issue, rolling-over issue, and super long-term maturity issue. We have launched the first batch of the Guangdong-Hong Kong-Macao Greater Bay Area special municipal bonds to better support the building of the Greater Bay Area and the Pilot Demonstration Area. We actively explored new municipal bond ETF products to boost the liquidity of municipal bond market, thus resulting in the issuance and list of the first 5-year municipal bond ETF.
Next, SZSE will speed up the implementation of the task in deepening sweeping reforms of capital market, increase support for areas in line with national strategies and industrial policies, and deepen all-round cooperation with local governments. In addition, we will also provide enriched product systems, higher market efficiency and upgraded services. SZSE will further bring the functions and advantages of the exchange bond market in serving the real economy into full play, and pursue progress in high-quality development of the exchange bond market.
CMPO is Listed after Assets Restructuring and the Name Change SZSE Facilitates the Reform of Central SOEs
Date: 2019-12-18
On December 16, the Assets Restructuring and Renaming & Listing Ceremony of China Merchants Property Operation & Service Co., Ltd. (“CMPO”) was held at SZSE. The property management assets of China Merchants Group were injected into the listed company AVIC SUNDA. The stock name was officially changed from “AVIC SUNDA” to “CMPO”, and the code was changed to 001914. More than 300 leaders and guests including Chairman of China Merchants Group Mr. Li Jianhong, President of China Property Management Institute (“CPMI”) Mr. Shen Jianzhong and President & CEO of SZSE Mr. Wang Jianjun attended the listing ceremony. The restructuring is another important achievement of the continuous deepening of strategic cooperation between China Merchants Group and SZSE following the listing of CMSK, CMET and CM Port Group on SZSE. It is also an important step for the capital market to help SOEs deepen reform and support the supply-side structural reform.
Good deeds shall reach forward to future generation. The restructuring signifies the quality asset integration and business collaboration in the property sector between China Merchants Group and Aviation Industry Corporation of China, Ltd. It serves as a good example of two central SOEs to implement the overall plan of reform of SOEs, concentrate resources to strengthen and improve main business, and realize the market-oriented integration of the business sector of central SOEs. As for listed companies, it is also conducive to expanding their management, improving their governance structures, enhancing their multi-industry management capabilities, and broadening their professional services. Ji Yu Property Co., Ltd., established in 1914, is the earliest real estate operation company in China in the 20th century. The restructured CMPO will bear the century-old mission of stock asset management, operation and service of China Merchants Group and officially set sail anew.
SZSE, as an important platform for the capital market to serve the national strategies, has made continuous and full efforts to improve the quality and effect of the reform of SOEs via different channels. At present, it has established a diversified cooperation mechanism with more than 60 central SOEs to push through the implementation of a number of projects in a pragmatic manner and to explore the practice approach of using capital market to improve the efficiency of state-owned capital operation. Next, SZSE will pursue progress in the implementation of the key task of CSRC in deepening sweeping reforms of capital market. Working closely around the fundamental goal of promoting the high-quality development of the economy, it will give full play to the advantages of market, technology, services and location, deepen market reform, and enhance its ability of direct financing. It will improve basic systems, upgrade market cultivation and promote law-based corporate governance. Through all these efforts, it will endeavor to help improve the quality of listed companies and better serve the building of the Guangdong-Hong Kong-Macao Greater Bay Area and the Pilot Demonstration Area of Socialism with Chinese Characteristics.
