Recently, the State Council issued the "Opinions on Further Improving the Quality of Listed Companies", which is to further strengthen the functional positioning of the capital market, activate the vitality of market entities, increase support for the real economy, and make greater efforts to help form a major domestic cycle as the main body , A major move for the new development pattern of mutual promotion of domestic and international double cycles.

In building a new development pattern that focuses on internal cycles and implements dual cycles, the aggregation and allocation of financial elements is an important part. At present, my country is accelerating the expansion of financial opening to the outside world, forming a mutually beneficial and win-win pattern with the world financial market as soon as possible, binding the bonds of common interests, and providing strong support for the new development pattern.

With the new crown pneumonia epidemic raging and the global economy falling into recession, my country took the lead in getting out of the haze of the epidemic. The economy has shown strong resilience and vigorous vitality, and its economic fundamentals have continued to improve, which is favored by foreign investors. A vibrant, high-return capital market can firmly attract domestic and overseas funds like a magnet, strengthening my country's global financial resource allocation capabilities.

In this process, the hub function of the capital market will become more prominent. The capital market is the link that connects entities and capital, financiers and investors, and the quality of listed companies is the pillar and cornerstone that supports the capital market. Therefore, improving the quality of listed companies is the source of improving the investment value of the capital market. It is for enhancing the international influence and attractiveness of my country’s capital market, giving full play to the capital market’s ability to optimize resource allocation, protecting the legitimate rights and interests of investors, and promoting the continued stability and health of my country’s capital market. Development is of great significance.

In recent years, my country's capital market has comprehensively deepened reforms, and the improvement of the quality of listed companies has been firmly implemented as a basic project. The quality of listed companies has continued to improve, the number has increased significantly, and the overall situation has improved significantly. The number of listed companies on the Shanghai and Shenzhen Stock Exchanges has gone from less than 1,400 in 2005 to more than 4,000 today. Listed companies have become more prominent in the "main force" role in the national economy and have become innovative "front-runners" and industry "vanguards" ". At present, foreign financial institutions already hold more than 6% of the total market value of China's A-share tradable shares. The three internationally renowned indexes of MSCI, FTSE Russell, and S&P Dow Jones are all included in A-share listed companies.

At present, there are still some problems with the quality of listed companies, and there is still a certain gap with the requirements of building a modern economic system. The market has great expectations for improving the quality of listed companies and the policy of institutional innovation. The "Opinions on Further Improving the Quality of Listed Companies" has targeted and systematic reform measures to improve the quality of listed companies, with a view to better exerting the pivotal function of the capital market and meeting market demands and social expectations.

Improving the quality of listed companies is a systematic project. To solve the outstanding problems and "pain points" of some current listed companies, such as solving the problems of stock pledge risk, capital occupation, illegal guarantees, etc., local governments and multiple departments need to participate, strengthen on- and off-market consistent supervision, strengthen risk constraints, and increase illegality. Violation costs, establish an efficient and flexible collaboration mechanism and information sharing mechanism. In particular, it is necessary to summarize the policy measures and experience supporting the resumption of work and production of enterprises since the epidemic, improve the mechanism for listed companies to respond to major emergencies, and comprehensively use economic, legal and necessary administrative methods to jointly standardize the development, excellence and strength of listed companies Provide strong support. As a result, my country's capital market will become more dynamic and attractive, and domestic and foreign investors will feel more rewarded.

We believe that a standardized, transparent, open, dynamic, and resilient capital market will effectively help accelerate the construction of a new development pattern.