The 7th Small and Medium-Sized Enterprises (SMEs) Forum jointly sponsored by the Ministry of Industry and Information, the National Development and Reform Commission, the Ministry of Science and Technology, the Shenzhen Municipal Government and the Shenzhen Stock Exchange (SZSE) was held yesterday in Shenzhen.
The forum discussed a series of topics such as new challenges the SMEs are facing under the global financial turmoil, how to boost investment, financing and innovation of SMEs, capital market’s role in deployment of innovative resources and improvement of market’s capability to serve economic entities with focus on serving economic entities and SMEs financing under global financial crisis and further study on concept of scientific development.
SHANG Fu Lin, Chairman of the China Securities Regulatory Commission addressed on the forum while several other principals also made speeches.
SHANG noted that China’s stock market is quite volatile amid the financial turmoil, which pushes us to keep exploring working rules of the market and deepening our knowledge on the market.
He also said that the capital market is a derivative of the opening-up reform and a significant part of socialism with Chinese characteristics and powerhouse for rapid and healthy development of national economy. The capital market has been acting more and more important role in social and economic development during the past a few decades. Listed companies aggregately accomplished business income of 8.6 trillion for the first three quarters of this year, equivalent to 42.8 percent of GDP figure for the same period. By the end of October, stock market has raised 2.3 trillion yuan while bonds raised 1.3 trillion. Root for the America-oriented crisis should be analyzed and experiences should be collected to advance supervision over securities market.
The internal rules of market evolvement should be acquired to launch new financial products tailored for economic development while sticking to basic situation and market order of China.
Expanding domestic consumption and advancement of economic development are priorities of current tasks. Acquisition of listed companies is encouraged to boost adjustment of industrial set-up. SMEs should be given more support, guiding and subsidies. The SMEs Board has been acting important roles in guiding and regulating SMEs since its establishment four years ago. Bonds market is to be developed to tackle difficulties for this industry. Regulations and compliance should be tightened to timely settle irregularities.
LIU Yan Hua, Deputy Minister of the Ministry of Science and Technology expressed that confidence is the key to integrate finance and technology for setting up pf a scientific and technological finance system in a bid to bolster growth of multi-layered capital market and growth board.
Given the current obstacles, policies on credit and taxation should be adjusted and SMEs credit guarantee system optimized to help SMEs, said OU Xin Qian, Deputy Minister of the Ministry of Industry and Information.
TU Guang Shao, Vice Mayor of Shanghai, pointed that financial connections between SMEs should be founded to factually fix fund-raising problems.
Several economists said that technological innovation has become the engine to sustainable development of Chinese economy under the current circumstance. The Growth Board is a substantial mean for enterprises to move towards innovation.
CHEN Dong Zheng, Director of the SZSE, chaired the forum and expressed that short-term capital cannot solve fundamental fund-raising problems, which urgently needs the capital market to bail them out. Capital market can shore up economic development under effective regulations. There has been a set of scrutiny system working over the current capital market and Chinese listed companies and securities intermediates are working properly who are eligible to further push the capital market move forward.
Roughly 500 people attended the forum including representatives from venture capital institutions, listed companies and correspondents.
Source: Mondovision / Shenzhen 2.11.2008