New re­form mea­sures un­veiled for Shen­zhen


China on Sun­day an­nounced a new list of the first batch of au­tho­rized mat­ters for com­pre­hen­sive pi­lot re­forms in Shen­zhen, as part of its on­go­ing ef­forts to fa­cil­i­tate high­er­level re­forms and open­ing- up in the high- tech hub ad­ja­cent to Hong Kong.

The list out­lined 40 de­tailed re­form mea­sures to be im­ple­mented in Shen­zhen, such as pro­mot­ing the re­form of the reg­is­tra­tion- based IPO sys­tem in the city’s startup board ChiNext, the in­tro­duc­tion of a list­ing trans­fer mech­a­nism from the coun­try’s over- the- counter equity mar­ket to ChiNext and pi­lot­ing do­mes­tic is­suance of stocks or China De­pos­i­tory Re­ceipts by in­no­va­tive com­pa­nies.

The an­nounce­ment came af­ter Pres­i­dent Xi Jin­ping at­tended a gath­er­ing on Wednes­day to cel­e­brate the 40 th an­niver­sary of the es­tab­lish­ment of the Shen­zhen Spe­cial Eco­nomic Zone, where he called on the city to build it­self into a pi­lot zone for so­cial­ism with Chi­nese char­ac­ter­is­tics.

Ning Jizhe, vice- min­is­ter of the Na­tional De­vel­op­ment and Re­form Com­mis­sion, said the new list, to­gether with the newly im­ple­mented plan for com­pre­hen­sive pi­lot re­forms in Shen­zhen, will un­leash huge ben­e­fits en­abled by re­forms for its high- qual­ity de­vel­op­ment.

“Un­der the over­all frame­work of the new plan, the list has out­lined 40 tar­geted re­form mea­sures, of which more than 20 re­quire ad­just­ing ex­ist­ing laws and reg­u­la­tions,” Ning said at a news con­fer­ence on Sun­day.

Cap­i­tal mar­ket in­te­gra­tion

Dong Dengxin, di­rec­tor of Wuhan Uni­ver­sity of Sci­ence and Tech­nol­ogy’s Fi­nance and Se­cu­ri­ties In­sti­tute, said the pi­lot re­form high­lighted the ac­cel­er­a­tion of China’s cap­i­tal mar­ket re­form and fur­ther in­te­gra­tion of the mar­ket with in­ter­na­tional prac­tices.

“The cap­i­tal mar­ket re­form in Shen­zhen has taken bolder steps, which will help reg­u­la­tors and mar­ket play­ers to gain use­ful ex­pe­ri­ence and will help im­prove the fun­da­men­tal sys­tem and ef­fi­ciency of China’s over­all cap­i­tal mar­ket,” he said.

He said that the re­form mea­sures, such as the in­tro­duc­tion of stock in­dex fu­tures of Shen­zhen- listed shares, will help en­rich the fi­nan­cial de­riv­a­tive prod­ucts in the mar­ket and boost the at­trac­tion of the Shen­zhen mar­ket to both do­mes­tic and in­ter­na­tional in­vestors.

The es­tab­lish­ment of a list­ing trans­fer mech­a­nism from China’s over- the- counter equity mar­ket to ChiNext will also help the coun­try’s smaller in­no­va­tive firms gain eas­ier ac­cess to cap­i­tal and boost their at­trac­tive­ness to in­vestors. And the in­tro­duc­tion of the list­ing of Chi­nese De­pos­i­tory Re­ceipts on the Shen­zhen Stock Mar­ket will also help fa­cil­i­tate the re­turn of over­seas- listed Chi­nese com­pa­nies to the A- share mar­ket, Dong added.

Ac­cord­ing to the new list, more ef­forts will be made to sup­port the con­struc­tion of a big data cen­ter in the Guang­dong- Hong Kong- Ma­cao Greater Bay Area, pi­lot China’s first per­sonal bank­ruptcy sys­tem in Shen­zhen and grant greater au­ton­omy to the city to pi­lot in fields in­clud­ing ar­ti­fi­cial in­tel­li­gence, au­ton­o­mous driv­ing, health­care and in­for­ma­tion ser­vices.

Other mea­sures in­clude pro­mot­ing the es­tab­lish­ment of tech­nol­ogy trans­fer de­part­ments in univer­si­ties and sci­en­tific re­search in­sti­tu­tions, au­tho­riz­ing Shen­zhen to in­de­pen­dently is­sue lo­cal gov­ern­ment bonds and ex­pand­ing open­ing- up in ports and ship­ping sec­tors.

Wang Changlin, pres­i­dent of the NDRC’s Academy of Macroe­co­nomic Re­search, spoke highly of the bolder re­forms to be im­ple­mented in Shen­zhen, es­pe­cially in the mar­ket- based al­lo­ca­tion of fac­tors of pro­duc­tion, business en­vi­ron­ment op­ti­miza­tion and open­ing- up.

“With the sup­port of pref­er­en­tial poli­cies, Shen­zhen will not only foster high- qual­ity de­vel­op­ment, but will also play a key role in boost­ing the de­vel­op­ment of the Greater Bay Area and even the whole na­tion,” he said.

Wang Yim­ing, for­mer deputy di­rec­tor of the De­vel­op­ment Re­search Cen­ter of the State Coun­cil, said the new moves demon­strated China’s firm de­ter­mi­na­tion to open wider to the out­side world.

Shen­zhen, the home of Chi­nese tech gi­ants such as Huawei and Ten­cent, has been play­ing a sig­nif­i­cant role in pow­er­ing China’s eco­nomic trans­for­ma­tion and tech­no­log­i­cal in­no­va­tion.

Last year, the city’s gross do­mes­tic prod­uct ex­ceeded 2.6 tril­lion yuan ($ 388 bil­lion), mak­ing it the third- largest in China af­ter Shang­hai and Bei­jing.

Ac­cord­ing to the Min­istry of Sci­ence and Tech­nol­ogy, the added value of the high- tech in­dus­try in Shen­zhen reached more than 920 bil­lion yuan in 2019, ac­count­ing for over 34 per­cent of the city’s GDP.

“The city needs to make more ef­forts to se­lect in­no­va­tive tal­ents will­ing to carry out bolder re­forms, ex­plore in­cen­tives and create a fault- tol­er­ant mech­a­nism to en­cour­age re­forms,” said Liu Shi­jin, deputy di­rec­tor of the Eco­nomic Af­fairs Com­mit­tee of the Na­tional Com­mit­tee of the Chi­nese Peo­ple’s Po­lit­i­cal Con­sul­ta­tive Con­fer­ence.

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