CGTN:

President Liu, as you have just mentioned, people are very concerned with the National Equities Exchange and Quotations (NEEQ). How will the CSRC promote the construction of a multi-level capital market system? What kind of new measures will be implemented on the reform of NEEQ and regional equity markets?

Liu Shiyu:

I’ll give the floor to our vice president Zhao Zhengping, who’s in charge of the issue.

Zhao Zhengping:

Firstly, thank you for your concern about the construction of the multi-level capital market. The Chinese capital market structure includes stocks, bonds and derivative products; the stock market with multi-level features includes the exchange, the NEEQ and regional equity entities. In the past two years, and especially last year, the NEEQ market developed rapidly with over 10,000 listed companies. Actually, up to February 24, the number had reached 10,715. With so many listed medium, small and micro businesses, we have had to improve the financing structure, enhance brand value and promote investment of social capital in start-ups. The equity financing volume of NEEQ listed companies so far totals 290 billion yuan, as President Liu mentioned. Last year, the figure was 139 billion yuan. Hence, this has resolved many financing difficulties for medium, small and micro businesses. The NEEQ market, being an important part of the multi-level market structure, still has further great potential in assisting innovative, start-up and growing businesses.

The regional equity market is also an important component of the multi-level capital market. Confined to the provincial administrative region where it is located, the regional equity market serves as a private equity market for local medium, small and micro businesses. Until now, there have been 40 regional equity markets established with a listing of 16,000 companies and a further 58,000 demonstration companies. The financing volume has reached 680 billion yuan.

Through our joint efforts, we hope we can turn it into an incubator for medium, small and micro businesses, an important channel for equity financing, and a comprehensive platform that medium, small and micro businesses will receive support from local governments so as to ensure that the capital market serves businesses and the real economy in a better way. Thank you.