Shenzhen Issued "Opinion": Promoting Industrial Transformation And Upgrading

The Shenzhen finance office, together with the Shenzhen Securities Regulatory Commission, and the Shenzhen development and Reform Commission, the economic and Trade Information Committee, the SASAC, the Qianhai authority and the venture capital Office recently issued the guiding opinions on the use of capital markets to promote the transformation and upgrading of Shenzhen's industry. The opinion is a practical measure to implement the "key work" requirement and take measures to guide the financial sector to better serve the real economy after the issuance of the key work of financial reform and innovation in Shenzhen last 2015.

The opinions are focused on Emerging industries Enterprises should enter into the capital market, merger and reorganization, transformation and upgrading of state owned enterprises, use of Qianhai resources, innovation of market institutions, and docking of industry, University, research and capital, etc., to clarify work ideas, clear specific opinions and guide market development. The main contents of the "opinions" include: supporting the establishment of a listing coordination mechanism closely coordinated by various departments, establishing a unified reserve resource pool of enterprises in multi-level capital markets, and coordinating the newly emerging industrial enterprises' entry into the capital market service; and giving full play to Shenzhen. Venture capital Guiding the role of the fund to promote the acquisition of industrial mergers and acquisitions fund Shenzhen The reform of mixed ownership will speed up the progress of the shareholding system reform of state owned enterprises in emerging industries, further improve the communication and coordination mechanism between state-owned assets supervision and securities supervision, further promote Qianhai's opening up and innovation in the capital market, encourage enterprises to take advantage of Qianhai's policies, upgrade the industrial level through the "going out" and "Introduction", encourage the market mechanism to revolve around the industrial transformation and upgrading of innovative business methods, increase the support for Shenzhen's regional bond market development, encourage market institutions to develop asset securitization business, optimize the production and research funding docking mechanism, and explore the establishment of a new industry investment and financing system composed of government, banks, equity investment companies, and financing Guarantee Corporation, etc., support and guide various venture capital funds to increase investment in Shenzhen's initial and early and medium term projects, so as to provide a platform for the public's innovation and entrepreneurship. Centralization, strengthening the relevant social security arrangements for mergers and acquisitions, promoting industrial transformation and upgrading in line with state and industrial policy oriented state owned SOEs, and promoting the implementation of capital market by Municipal State owned enterprises.

The "opinion" aims to make better use of the function of capital market, further deepen the effect of industrial transformation and upgrading, and increase support for "mass entrepreneurship and innovation".

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Speaking of the integration of industries, Wang Zhan said that the Yangtze River economic belt is a golden waterway. China's economic development has developed from the eastern coast to the central and western regions. Considering transportation costs, it will generally extend inland from the Yangtze River. In the future, many Eastern industries may be distributed along the Yangtze River upstream to Xi'an, Kashi and other places. At the same time, under the background of the "one belt and one way" strategy and the accelerated pace of going out, some industries can even transfer from the mainland to the coastal areas.

For example, many heavy equipment industries in Chengdu can consider moving to the coastal areas, because China's high-speed rail nuclear power will be exported in the future. If it is difficult to transport in the mainland, China's coastal areas will need heavy equipment bases, such as Shanghai's port, and nuclear power plants, rail vehicles and construction equipment should be placed in these areas. From this perspective, rail transit construction is of great significance.

Ping An Securities believes that taking into account the total economic volume of the Yangtze River economic belt, the size of the population and the market, and the Yangtze River Economic Belt's direct promotion to the "one belt and one road", its investment opportunities in the capital market are even more than that in Beijing, Tianjin and Hebei.

Taking into account the current issues related to the two sessions and the follow-up policy from top to bottom, the Yangtze River economic belt may be the next market theme draught. Combined with its own characteristics, the investment opportunities of the Yangtze River economic belt are mainly: 1) transport logistics and infrastructure investment, especially the related targets of the golden waterway; 2) the equipment manufacturing industry in the context of industrial upgrading and industrial transfer; 3) the regional environmental protection opportunities brought about by environmental improvement.

Wang Zhan suggested that the multimodal transport of railways, highways and waterways is very common in the world. It is hoped that China will consider connecting the construction of the "one belt road" with the Yangtze River Economic Belt in the "13th Five-Year plan", and form a multimodal transport pattern of railways, highways and waterways. It is suggested that the Ministry of transport can strengthen the top-level design and form an overall plan in this regard.