This photo shows the third Global Financial Leaders' Investment Summit in Hong Kong, south China, Nov. 19, 2024. (Xinhua/Zhu Wei)
BEIJING, Nov. 28 (Xinhua) -- The China Securities Regulatory Commission (CSRC) is committed to emphasizing supportive efforts on the development of new quality productive forces, said Wu Qing, chairman of the CSRC at the recently held third Global Financial Leaders' Investment Summit in south China's Hong Kong Special Administrative Region.
With combined support of national policies and from the capital market, the development of new quality productive forces is like powered with dual engines, getting into the fast lane.
-- Capital market offers effective support
The capital market, as a critical junction among capital, technology and industry, directly impacts the efficiency of cultivating new quality productive forces with the level of its activeness.
Through fulfilling its key roles in capital allocation, risk management and encouraging innovation, the capital market offers effective support to the development of new quality productive forces, said Tian Lihui, head of the Institute of Finance and Development at Nankai University.
The capital market offers essential funding to high-tech enterprises and innovative projects, which lowers financing costs and speeds up the commercialization of scientific and technological breakthroughs, said Tian, noting that it also motivates innovation among researchers and entrepreneurs through mechanisms like equity incentives.
In addition, the price discovery mechanism of the capital market helps identify and foster emerging industries with significant growth potential, thus contributing to the optimization and upgrading of the industrial structure, according to Tian.
The cultivation and formation of productive forces require long-term support of capital and technology, said Zhang Peng, deputy director of the Listed Companies Research Center with the Chinese Academy of Social Sciences, pointing out that the capital market, with its resource allocation, price discovery and other functions, can strategically channel funds and technology into future industries, offering robust and focused support for the emerging sectors.
Zhang believes that China's multi-tiered capital market system has its mission and roles highly aligned with the objective of fostering new quality productive forces. As this system continues to improve, it will accelerate the industrial and efficiency transformations brought about by new quality productive forces and therefore propel a shift in the dynamics driving economic growth.
-- Multiple measures steer gathering of premium resources
The CSRC has issued a number of policy catalysts this year including the sixteen measures for the capital market to serve the high-level development of technology enterprises, the eight new measures for the Science and Technology Innovation Board, and the six new measures on mergers and acquisitions (M&A) among listed companies, Wu introduced.
The measures are designed to further improve the inclusiveness and adaptability of the capital market, thereby facilitating the concentration of premium resources toward sectors that are fostering new quality productive forces.
The new measures on M&A encourage listed companies to transform toward new quality productive forces and to pursue cross-industry M&A with companies of new quality productive forces, in a bid to therefore further energize the M&A and restructuring market.
Since the introduction of the new measures in September, over 260 listed companies have announced asset restructuring plans, highlighting emerging industries as key areas for M&A activities.
Statistics indicate that there are almost 2,700 A-share listed companies in strategic emerging industries as of now. This year, the market has witnessed approximately 3,000 M&A and restructuring transactions.
The capital market serves as an optimal setting for cultivating new quality productive forces in China, under which context, listed companies are leading the way among enterprises nationwide in promoting the development of new quality productive forces, said Song Zhiping, chairman of the China Association for Public Companies.
Listed companies are expected to not only transform traditional industries through the integration of new quality productive forces but also aggressively pursue the development of strategic emerging industries and proactively design the layout of future industries.
M&A and restructuring activities can draw innovative resources into listed companies, prompting them to hasten their transformation and upgrade, improve their fundamentals, and bolster their potential for growth, profitability, innovation, and sci-tech capabilities.
Developing new quality productive forces serves as both a necessary internal requirement and a critical focal point for promoting high-quality development, which will exert a lasting influence on China's economic and social progress, according to Song. (Edited by Yu Huichen with Xinhua Silk Road, yuhuichen@xinhua.org)
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