On May 27, the Shanghai Stock Exchange (SSE) held the seminar on "Construction of Blue Chip Market and Guidance for Rational Investment", which attracted representatives from 200 securities business departments of 47 securities companies and some fund companies.
This seminar aimed to further implement the requirements of the China Securities Regulatory Commission (CSRC) for cementing the construction of the blue chip market and strengthening the publicity on rational investment, and assist securities companies to play a more pivotal role in guiding investors for establishing the concept of rational investment and value investing.
As mentioned at the seminar, Chinese securities market has been gradually keeping up with internationally accepted practices concerning systematic structure, operational mechanism, investor structure, investment concept and other aspects. Due to the change of operational pattern of the capital market, market participants and investors shall take a new look at the market and change their investment concept accordingly, for the purpose of adapting to the changeable market environment.
As a systematic engineering, the popularization of value investing and rational investment depends on joint effort of all market participants. The SSE, along with market participants like securities and fund companies, will take three measures to continuously promote the construction of the blue chip market in accordance with the principle of combining service innovation and supervision strengthening.
Firstly, the SSE will further strengthen the market's service function. In order to enhance the appeal of the market, the SSE will further enrich the constituents of the multi-tiered blue chip market by assisting the quality enterprises with great potential in the sub-sectors to go public on the SSE. Secondly, based on the innovative experience in the collateralized quotation repo of bonds, agreed repurchase securities trading and cross-market ETF and other business, the SSE will further strengthen the cooperation with market participants such as members and fund companies, thus pushing forward the product innovation of securities and fund companies. Thirdly, the SSE will further toughen the supervision. It will take such measures as cracking down on illegal speculation on newly issued shares, urging listed companies to distribute dividend and perfecting delisting system to lay a good foundation for guidance for rational investment and value investing.
According to an official from the relevant department of the SSE, the SSE will inject new blood into the blue chip market by further optimizing its structural layout, in a bid to provide the target and platform for rational investment and value investing. Meanwhile, the SSE will further propel the development of fund market by establishing two boards of public market and special market, introducing the ETF repurchase market to develop the 1-day and 7-day repurchase varieties and studying innovation products such as deferred ETF trading and stage-by-stage ETF trading.
During the interactive discussion, chief economists and strategy analysts from securities companies including China International Capital Corporation Limited, CITIC Securities Co. Ltd., Essence Securities Co., Ltd. and UBS Securities Co., Limited gave wide recognition to the current valuation advantage of blue chip and thought highly of the long-term investment value of the blue chip market. In addition, they all believed that the CSRC's recent measures, which focused on consolidating the development foundation of the market, would play an important role in promoting the sound development of the stock market and boosting the long-term rewards of the market.
As stated by representatives for assets management and innovative services from securities and fund companies in their speeches, the securities industry would face the best opportunity for innovative development and the inflexion point for innovative opportunities. As a result, all sectors of the community would have high expectations of a new round of reform in the securities industry. Currently, wealth management has been the urgent need of the society. The assets management business of securities and fund companies calls for the innovation of business mode and transformation of operational mode, which aims to build a product line of specified positioning, controllable risks and a complete coverage of risk-return proportion by taking clients' demands as the centre and differentiated development as the breakthrough.
Representatives from securities companies and business departments compared their notes on the experience in implementing the CSRC's united deployment of guidance for rational development and carrying out multi-tiered investors educational activities, and discussed on issues including the measures for effectively curbing irrational behaviors of some small and medium-sized investors such as new shares speculation, small-cap stocks speculation and short-term investment through centralized publicity and education as well as risk alert, doing well in the client management and fully implementing investors' classified management and suitability system, establishing a professional team for investor education and financial consultation focusing on service modes and quality and propelling the strategic transformation of brokerage business from channel service to wealth-management one.
This seminar provided a platform for the exchange on investor education and service experience in the community. Besides, it also provided a beneficial reference for the front-line service staff to develop ideas, improve the capability of guiding rational investment and innovate in the ways to guide rational investment.
FTSE Mondo Visione Exchanges Index:
Shanghai Stock Exchange Takes Three Measures To Optimize Structure Of Blue Chip Market
Date 30/05/2012