Strongly promote the deep integration of technological innovation and industrial innovation. Shanghai Stock Exchange supports the high-quality development of the capital market through multiple dimensions.

Economic Reference Network Reporter Zhang Wen

At the press conference on March 6th for the Fourth Session of the 14th National People’s Congress, China Securities Regulatory Commission Chairman Wu Qing discussed the high-quality development of the capital market during the “14th Five-Year Plan” period, focusing on “five new improvements” in risk prevention, strengthened regulation, and promotion of high-quality growth.

As a vital hub serving the economy and society, how does the Shanghai Stock Exchange (SSE) effectively fulfill its mission and ensure policy implementation? Addressing questions from various parties, the SSE responded to media inquiries. The SSE stated it will unwaveringly implement the decisions and deployments of the Party Central Committee and the State Council, faithfully carry out the CSRC’s work requirements, adhere to steady progress and reform breakthroughs, and actively pursue a path of financial development with Chinese characteristics, contributing to China’s modernization and the building of a strong financial nation.

Promoting the Concentration of Various Elements and Resources into New-Quality Productivity Fields

In recent years, under the guidance of the CSRC, the SSE has accelerated reforms to adapt to innovation-driven development, focusing on better leveraging the functions of the capital market and promoting the aggregation of various factors and resources into new-quality productivity sectors.

According to reports, over the past five years, the proportion of technology innovation companies listed on the Shanghai market has increased to 40%, with nearly 70% of newly listed companies being tech innovation enterprises. Since the launch of the STAR Market six years ago, it has supported 604 “hard technology” companies to go public, raising over 1.1 trillion yuan, with a total market value exceeding 11 trillion yuan. R&D investment has surged, with annual R&D spending by SSE-listed companies surpassing 1 trillion yuan, accounting for nearly 40% of national corporate R&D expenditure, and about 300 companies receiving national science and technology awards. The STAR Market companies have accumulated 130,000 patents, maintaining leading R&D intensity.

Since the release of the “Six Mergers and Acquisitions Rules,” the SSE has facilitated approximately 1,300 asset transactions, with nearly 70% of targets in the new-quality productivity fields. Major asset reorganizations are projected to grow 38% year-over-year by 2025, with the number of reorganizations on the STAR Market exceeding the total of the past six years. Landmark deals such as billion-yuan mergers and cross-border acquisitions have been efficiently executed. By the end of 2025, the SSE will have issued approximately 1.76 trillion yuan of STAR Market bonds, serving over 500 enterprises. The successful launch of the first batch of STAR convertible bonds and STAR bond ETFs has injected “financial vitality” into tech innovation companies.

Looking ahead, the SSE will focus on accelerating the development of new-quality productivity, consolidating and expanding advantages such as “large-cap blue chips, leading hard technology, diversified support, and precise services.” It will steadily implement reform measures, promote deep integration of technological and industrial innovation, and further enhance the intrinsic stability of the capital market. The goal is to serve the nation’s high-level technological independence and the development of new-quality productivity through concrete actions.

Advancing Both Stockpile Reforms and Policy Planning for Incremental Growth

In recent years, guided by the CSRC, the SSE has focused on supporting major national strategies for high-level technological independence, promoting the effective implementation of the “Eight Rules for the STAR Market” and the “1+6” reform plan. It has introduced innovative systems and representative cases, amplifying reform effects and clarifying the market’s technological narrative.

This year’s government work report explicitly emphasizes promoting the deep integration of technological and industrial innovation. For key core technological enterprises, a “green channel” mechanism for listing, financing, mergers, and acquisitions will be normalized. The SSE stated it will resolutely implement relevant work requirements, increase institutional support for tech enterprises with breakthroughs in core technologies, and expand diverse equity financing channels. It will further leverage the resource allocation function of the capital market to support regular financing and M&A activities for tech innovation and transformation enterprises.

On one hand, the SSE will adhere to steady progress while advancing both stockpile reforms and new policies. Following the CSRC’s directives, it will deepen the implementation of the “Eight Rules” and the “1+6” reform, continuously evaluate and improve related systems, and reserve policies to support technological innovation and new-quality productivity. It will cautiously expand the industry scope of the fifth set of listing standards, cultivate key backup enterprises, and enhance market service foresight and precision. The SSE will also host future industry salons to gather strength and explore ways to enhance the capital market’s support for future industries.

On the other hand, the SSE emphasizes quality control, strictly regulating issuance and listing approvals. Considering the overall layout of the national strategy for technological independence, it will deepen understanding of “hard technology,” leverage the STAR Market’s role in supporting new-quality productivity, and utilize regular cooperation mechanisms with relevant government departments to accurately identify “hard technology” enterprises. It will better coordinate investment and financing, hold intermediaries accountable, and prevent subpar companies with weak technological capabilities or unclear market prospects from listing. The aim is to ensure that limited listing resources are genuinely used to support technological innovation, which is also a necessary step to protect investors’ legitimate rights and interests.

Further Improving the Long-term Capital Entry Mechanism

In the area of comprehensive investment and financing reform, the SSE is focused on risk prevention, strengthened regulation, and promoting high-quality development. It accelerates efforts to improve service quality for economic and social development.

By 2025, the scale of IPOs and refinancing on the SSE is expected to grow 1.5 and 5 times respectively, totaling over 1.04 trillion yuan; bond issuance will reach 7.9 trillion yuan, with industrial bonds surpassing municipal investment bonds, and the issuance of STAR Market bonds maintaining over 65% growth for two consecutive years. Asset-backed securities will have issued 1.13 trillion yuan, up 16%. The development of public REITs will be driven by both initial launches and expansions, with 52 listed REITs raising nearly 150 billion yuan, accounting for nearly 70% of the market.

The SSE will continue to strengthen the foundation and tighten regulation, implementing three phases of a three-year plan to improve the quality of listed companies. The performance of SSE-listed companies has steadily increased, governance levels have improved, and market vitality has been released. The “Quality, Efficiency, and Return” special campaign continues, with over 70% of SSE companies participating. The SSE 50, STAR 50, and SSE 180 indices are fully covered. Dividend payouts have increased, with cumulative dividends exceeding 7 trillion yuan during the 14th Five-Year Plan, and 2025’s cash dividends reaching 2.06 trillion yuan, setting a new record.

The SSE will further enrich high-quality index offerings, with the SSE Composite Index’s “One Body, Two Wings” branding continuing to strengthen. By 2025, the ETF market scale on the SSE will surpass 3 trillion and 4 trillion yuan respectively, with trading volume and market value ranking first and second in Asia. Long-term capital holdings of SSE ETFs will see significant growth within the year.

Next, the SSE will deepen comprehensive reform of the capital market investment and financing system, further improve mechanisms for long-term capital entry. It will better leverage equity and debt financing, promote the implementation of reforms, and increase the proportion of direct and equity financing. It will expand the scale of industrial bonds and develop innovative products supporting national strategies. It will also promote the value growth and governance improvement of listed companies, continue implementing the “Five Major Regulations,” deepen the “Quality, Efficiency, and Return” campaign, improve incentive and restraint mechanisms, and guide companies to enhance governance, increase dividends, and support mergers and acquisitions to boost core competitiveness.

Continuing to Optimize and Prudently Expand Cross-border Connectivity and Cooperation

In the area of deepening two-way opening of the capital market, guided by the CSRC, the SSE has actively built an open, win-win market ecosystem, making new progress in high-level institutional opening.

First, it has optimized connectivity mechanisms and expanded business scope, continuously promoting two-way market opening. It has cooperated with the CSRC to improve the Qualified Foreign Institutional Investor (QFII) system, facilitated inclusion of stock ETFs in the Shanghai-Hong Kong Stock Connect, which has seen a total trading volume of 108.8 trillion yuan during the 14th Five-Year Plan, a 311% increase over the 13th Five-Year. It has advanced the issuance of Global Depositary Receipts (GDRs) in markets like the UK and Switzerland, with 10 SSE-listed companies raising a total of $3.35 billion. It has expanded ETF connectivity to Hong Kong, Singapore, and Brazil, notably achieving ETF two-way connectivity with Brazil’s stock exchange in 2025, marking the first such mechanism in South America. It has also established new capital market cooperation with Middle Eastern countries.

Second, it has enriched cross-border index products, continuously promoting two-way product opening. It is enhancing the competitiveness of the CSI and SSE indices, accelerating the development of a “Chinese Brand” index system, and exploring more forms of index cooperation. Currently, the cross-border ETF scale on the SSE approaches 600 billion yuan, with increasing international influence.

Third, it has systematically planned services for international investors, significantly improving service quality. It has hosted the International Investor Conference for seven consecutive years, organizing cross-border promotion, policy interpretation, research visits, and training activities to attract more international investors to China’s capital markets.

Fourth, it has strengthened communication with international organizations, actively participating in global financial governance. It has served as a director of the World Federation of Exchanges (WFE) for many years, maintaining dialogue with major international financial organizations, and continuously voicing China’s position in international financial governance to enhance the global image of China’s capital markets.

Next, the SSE will focus on improving cross-border investment and financing convenience, further creating a transparent, stable, and predictable market environment. It will continue to optimize and cautiously expand cross-border connectivity mechanisms, enrich cross-border index product offerings, improve services for international investors, strengthen cooperation with exchanges in Belt and Road countries and regions, and actively tell China’s capital market story.