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 outlined the high-quality development roadmap for the capital market during the “14th Five-Year Plan” period, focusing on five areas of new improvement 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 the media, 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 follow the path of financial development with Chinese characteristics. This will contribute to serving China’s modernization and building a strong financial nation.

Promoting the Concentration of Various Factors and Resources into the Field of New-Quality Productivity

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 to promote the aggregation of various factors and resources into the field of new-quality productivity.

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 rapidly increased, with listed companies’ annual R&D spending surpassing 1 trillion yuan, accounting for nearly 40% of national corporate R&D expenditure, and about 300 companies receiving national science and technology awards. STAR Market companies have accumulated 130,000 patents, maintaining leading R&D intensity.

Since the release of the “Six Rules for Mergers and Acquisitions,” the SSE has facilitated approximately 1,300 asset transactions, with nearly 70% of targets in the field of new-quality productivity. Major asset reorganizations are projected to grow 38% year-on-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 about 1.76 trillion yuan of STAR Market bonds, serving over 500 companies. The first batch of STAR Market convertible bonds and bond ETFs have been successfully launched, injecting “financial vitality” into tech innovation enterprises.

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, deeply promote the integration of technological and industrial innovation, and further enhance the intrinsic stability of the capital market. The goal is to achieve a positive interaction between deepening reforms, enhancing functions, and stabilizing the market, actively serving the nation’s high-level technological independence and the development of new-quality productivity.

Advancing Both Stockpile Reforms and Policy Planning for Incremental Growth

In recent years, guided by the CSRC, the SSE has focused on serving the major national strategy of technological independence and self-reliance. It has promoted the implementation of the “Eight Rules for STAR Market” and the “1+6” reform plan, launching innovative systems and representative cases, with reform effects continuously expanding and the market’s technological narrative becoming clearer and more tangible.

This year’s government work report explicitly emphasizes promoting the deep integration of technological and industrial innovation. For key core technological enterprises, a regular “green channel” for listing, financing, mergers, and acquisitions will be implemented. 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 for tech innovation and transformation enterprises.

On one hand, the SSE will adhere to steady progress while advancing both stockpile reforms and policy planning for incremental growth. Following the CSRC’s deployment, it will deepen the implementation of the “Eight Rules for STAR Market” 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 scope of the fifth set of listing standards and focus on cultivating key backup enterprises, enhancing 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 will maintain a quality-oriented approach, strictly controlling the entry standards for issuance and listing. Considering the overall layout of the national strategy for technological independence, it will deepen understanding of “hard technology,” actively utilize the STAR Market’s role in serving new-quality productivity, and work with relevant government departments to accurately identify “hard technology” enterprises. It will better coordinate investment and financing, hold intermediaries accountable, and prevent low-quality enterprises with weak innovation 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 Market Entry Mechanism

In the area of investment and financing reform, the SSE is closely aligned with risk prevention, strengthened regulation, and high-quality development. It accelerates the improvement of services for high-quality economic and social development.

By 2025, the scale of IPOs and refinancing on the Shanghai market 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 bonds, and STAR Market bonds growing over 65% for two consecutive years. Asset-backed securities will total 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 foundational and regulatory measures, launching 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 continuously released. The “Quality and Efficiency for Better Returns” initiative remains ongoing, with over 70% of listed companies participating. The SSE 50, STAR 50, and SSE 180 indices are fully covered. Dividend payouts have increased significantly, with cumulative dividends declared exceeding 7 trillion yuan during the 14th Five-Year Plan period, 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 Shanghai Composite Index’s “One Body, Two Wings” branding continuing to strengthen. By 2025, the ETF market scale on the SSE will surpass 30 trillion and 40 trillion yuan respectively, with trading volume and market value ranking first and second in Asia. Long-term capital holdings of SSE ETFs will see substantial growth within the year.

Next, the SSE will deepen comprehensive reforms of the capital market investment and financing system, further improve mechanisms for long-term capital entry. This includes better leveraging equity and debt financing functions, implementing reforms to increase direct and equity financing, expanding the scale of industrial bonds, and developing innovative products supporting national strategies. It will also promote the value growth and governance improvement of listed companies by continuing to implement the “Five Major Regulations,” deepening the “Quality and Efficiency for Better Returns” initiative, refining incentive and restraint mechanisms, and encouraging companies to enhance governance, dividends, and share repurchases. Supporting companies through mergers and acquisitions to improve core competitiveness will also be prioritized.

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

In the area of deepening two-way opening of the capital market, the SSE, under the guidance of the CSRC, 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 coordinated 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 promoted the landing of GDR programs in markets like the UK and Switzerland, with 10 Shanghai-listed companies issuing GDRs and raising $3.35 billion. It has expanded ETF connectivity to markets in Hong Kong, Singapore, and Brazil, notably achieving ETF cross-border connectivity with Brazil’s stock exchange in 2025, marking the first such cooperation 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 has enhanced the competitiveness of the CSI and SSE indices, accelerated the development of a “Chinese Brand” index system, and explored 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, organized cross-border promotion, policy interpretation, research visits, and cooperation training, attracting more international investors to participate in China’s capital markets.

Fourth, it has strengthened communication with international organizations and actively participated in global financial governance. It has served as a director of the World Federation of Exchanges (WFE) for many years, maintained communication with major international financial organizations, and continued to voice China’s perspectives in international financial governance, enhancing 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 exchanges and cooperation with exchanges in Belt and Road countries and regions, and actively tell China’s capital market story.