The two sessions of Beijing, Shanghai and Guangdong concluded, and digital currency became a common focus of the three governments

Source: Securities Daily, author: Wu Xiaolu

Original title: "Experts, listed companies and institutional investors expressed their "greatest concern about finance" at the closing of the local "two sessions" in Beijing, Shanghai and Guangdong"

Moderator Chen Wei: Since late January, various places have entered the "two sessions time". In the 2021 government work reports disclosed by various places, Beijing, Shanghai and Guangdong, as the locations of important financial regulatory departments and financial infrastructure in my country, have all mentioned the reform and innovation of the capital market. Today, this newspaper focuses on the financial measures and focus points proposed by the local "two sessions" in Beijing, Shanghai and Guangdong, and conducts multiple interviews. In the future, we will continue to pay attention to the "financial heat map" drawn by the local "two sessions" in some provinces and cities that are close to financial innovation and the capital market.

On January 27, the local "two sessions" in Beijing, Shanghai and Guangdong closed. As the three core regions where financial institutions are concentrated, the financial measures and focus points in their government work reports reveal some of the focus points of my country's financial policies this year.

According to the Securities Daily reporter, in the financial blueprints of the government work reports of Beijing, Shanghai and Guangdong, digital currency has become a common focus. In addition, Beijing and Guangdong both mentioned the development of green finance and digital economy. In terms of specific measures, the three places also have differences. For example, Beijing has mentioned promoting the reform of the New Third Board for many years, Shanghai has mentioned the cultivation of science and technology enterprises to go public, and Guangdong has mentioned the Shenzhen Stock Exchange and the Guangzhou Futures Exchange for two consecutive years.

By interviewing regional economic experts, local institutional investors and listed companies, the reporter perceived the financial "heat map" of the government work reports of the three places from three dimensions, and looked forward to the direction of financial reform and investment opportunities in the capital market.

Beijing: Number of unicorn companies ranks first among cities in the world

The Beijing government work report shows that in 2020, Beijing's GDP reached 3.6 trillion yuan, an increase of 1.2%; the per capita GDP was about 24,000 US dollars, reaching the medium level of developed economies. Among them, the digital economy accounted for 38% of GDP, ranking first in the country. At present, Beijing has 29,000 national high-tech enterprises and 93 unicorn enterprises, ranking first among cities in the world.

In the financial sector, the Beijing government work report proposed that this year, it will vigorously support the opening up and development of the financial industry. It will take the lead in implementing the national financial opening-up policy. It will promote the implementation of two reform and innovation pilot zone plans for green finance and science and technology innovation finance, accelerate the construction of financial technology and professional service innovation demonstration zones, promote the pilot application of digital currency, improve the implementation mechanism of the "regulatory sandbox", and focus on developing emerging financial businesses such as wealth management and infrastructure finance. It will promote the reform of the New Third Board and give full play to the role of the first loan, renewal loan, title confirmation financing, and intellectual property pledge financing center. It will accelerate the establishment of a financial court.

Experts say: The development of financial technology is worth looking forward to

"The report talked about green finance, especially science and technology innovation finance, wealth management and infrastructure finance, highlighting Beijing's characteristics." Yin Zhentao, director of the Financial Technology Research Office of the Institute of Finance of the Chinese Academy of Social Sciences, told the Securities Daily reporter that infrastructure is an important foundation for the development of the financial market. As a policy-making city, Beijing should also assume more obligations to develop emerging financial businesses such as wealth management and infrastructure finance.

Yin Zhentao said that the opening up of the financial industry is actually the most important point in China's current financial reform. As the most important city for financial policy formulation, it is very necessary for Beijing to be at the forefront of financial opening policies. Focusing on the capital market, Yin Zhentao said that the National Equities Exchange and Quotations is located in Beijing, and the reform of the New Third Board is an important part of the multi-level capital market and the focus of capital market reform.

Regarding the future, Yin Zhentao said that there are two things to look forward to: first, the development of financial technology or the development of technology-based financial industries. Second, Beijing should continue to highlight its policy-making capabilities.

Listed companies say: The digital economy will develop rapidly

A person from a company listed on the Science and Technology Innovation Board in Beijing told the Securities Daily reporter that "the government work report pays more attention to measures related to the digital economy because they are closely related to the development of our industry."

"In fact, the digital economy has been defined as the main line of the new round of industrial cycles, and the core element of the digital economy is data." A person from a company listed on the Science and Technology Innovation Board said that data generation can be roughly divided into three categories: one is generated through PC office work, the second is a large amount of data generated during the production and processing process, and the third is purely natural data. Beijing's industrial structure tends to be the former, with more companies that use PC office or are driven by technology. After the concept of digital economy is recognized, related industries will also develop rapidly.

"Vigorously develop the digital economy and build new advantages for high-quality development" is the third key task mentioned in the Beijing government work report this year. The above-mentioned person said that the report also mentioned the continued deepening of the 4.0 version of the business environment reform, as well as the confirmation of rights and financing services, which are all supporting measures. Overall, the government work report has made all-round and systematic arrangements from the development of digital economy infrastructure, supporting financing services, and industry landing. In the coming period, Beijing's digital economy will achieve faster development.

Institutional investors say: We hope to support the development of angel investment

The top priority of Beijing’s government work report this year is scientific and technological innovation - "strengthening the core position of innovation and accelerating the construction of an international scientific and technological innovation center."

"This government work report places great emphasis on innovation, sending a strong signal," a person from Xingshi Investment told the Securities Daily reporter. "This means that Beijing will continue to exert its strength in the field of scientific and technological innovation in the future. In the future, Beijing will more firmly leverage its innovation advantages and, under the guidance of the strategy of building a strong country in science and technology, consolidate its innovative position in the country and even the world."

People related to Xingshi Investment believe that in the process of supporting innovation, one of the most direct links is angel investment, which was once the "king of financing" for supporting high-tech start-ups. It is hoped that Beijing will provide more support to it in terms of system and policy in the future. For example, it will strengthen tax support for angel investment, further grant local tax incentives in places with conditions; improve post-investment services such as talent recruitment and settlement incentives; reduce the operating costs of angel investment, and provide financial support, etc.

Shanghai: Last year's financing amount and total market value ranked first in the country

The Shanghai government work report shows that in 2020, Shanghai's GDP reached 3.87 trillion yuan, an increase of 1.7%. In addition, last year, the total transaction volume of Shanghai's financial market reached 227.48 trillion yuan, an increase of 17.6%, and the financing amount and total market value of listed companies ranked first in the country.

In terms of financial measures, Shanghai will focus on strengthening the "four major functions" this year to accelerate the promotion of high-quality economic development. In terms of strengthening the global resource allocation function, it will continue to promote the expansion of the financial industry's opening up; in terms of strengthening the source function of scientific and technological innovation, it will accelerate the cultivation of a group of "hard technology" companies to be listed on the Science and Technology Innovation Board and create an international intellectual property protection highland; in terms of strengthening the leading function of high-end industries, it will focus on enhancing the independent and controllable capabilities of the industrial chain and supply chain; in terms of strengthening the open hub portal function, it will carry out a comprehensive pilot project to expand the opening up of the service industry.

Experts say: The main framework of the international financial center has been established

He Qing, Party Secretary and Chairman of Guotai Junan Securities, told the Securities Daily reporter that last year, Shanghai had made remarkable achievements in the construction of an international financial center and financial services to the real economy. First, the financial market capacity has increased significantly; second, the main structure of the international financial center has been established, and it ranked third in the world for the first time in the Global Financial Center Index; finally, financial services to the real economy and the promotion of economic transformation have become more impressive.

"Shanghai's ranking in the Global Financial Center Index has risen to third in the world, reflecting the development level and competitive strength of Shanghai's financial center." Han Hanjun, member of the Shanghai CPPCC and deputy director of the Institute of Economics of the Shanghai Academy of Social Sciences, told the Securities Daily reporter that in the future, the development of Shanghai's financial industry will pay more attention to serving the real economy, especially with Shanghai's focus on strengthening the "four major functions". Financial development will more actively support the source of scientific and technological innovation and global resource allocation.

He Qing believes that Shanghai has the advantages of financial advancement and high-end talents in promoting the opening up of the financial industry. In terms of financial advancement, a series of factor markets such as the securities trading center, money market center, foreign exchange trading center, gold trading center, and futures trading center have settled in Shanghai, and a large number of domestic financial institutions and foreign financial institutions have been attracted to settle in Shanghai. At the same time, Shanghai has gained a lot of successful experience in international currency settlement, overseas project underwriting, and offshore RMB investment and financing of overseas projects by taking the lead in the construction of the free trade zone, which has laid a solid foundation for further opening up.

"In the future, Shanghai can further explore the opening up of the financial industry from three aspects: accelerating the construction of a more complete and developed factor trading function market, accelerating the reform of the new area of ​​Shanghai Free Trade Zone, and accelerating the improvement of the comprehensive strength of local financial institutions," said He Qing.

Regarding accelerating the cultivation of a number of "hard technology" enterprises to be listed on the Science and Technology Innovation Board, Han Hanjun believes that on the one hand, it is conducive to the overall improvement of Shanghai's scientific and technological innovation capabilities, and on the other hand, it is also conducive to the activation of Shanghai's stock market transactions and the injection of fresh vitality into the stock market. He Qing believes that, first, it is helpful to promote scientific and technological innovation as the first driving force for leading development; second, it is helpful to strengthen the role of enterprises as market entities in scientific and technological innovation; third, it is helpful for finance to return to its fundamental purpose of serving the real economy.

Listed companies say: Build a science and technology innovation center with global influence

Wu Benguang, the secretary of Shenlian Bio, told the reporter of Securities Daily that the Shanghai Municipal Government proposed to focus on strengthening the "four major functions" this year and accelerate the construction goal of promoting high-quality economic development, which is closely in line with Shanghai's urban positioning of building an international "five major centers". The specific measures to strengthen the global resource allocation function, the source function of scientific and technological innovation, and the high-end industry leading function will surely achieve the full combination of Shanghai's scientific and technological soft power and industrial hard power, achieve full coordination between financial capital and real industries, and lead Shanghai's long-term development.

Regarding the continued promotion of the financial industry to expand its opening up to the outside world and accelerate the cultivation of a group of "hard technology" companies to be listed on the Science and Technology Innovation Board, Wu Benguang believes that the implementation of corresponding measures can promote the functions of Shanghai's financial center to serve the positioning of building a science and technology innovation center with global influence, lead the rapid development of domestic high-tech companies and high-end industries, and accelerate the breakthrough of key core technologies.

Institutional Investors Say: Healthcare Sector Worth Watching

Wu Yue, deputy director of the research department of Harvest Fund Management and head of the consumer industry research team, told the Securities Daily reporter, "Although Shanghai was hit hard by the epidemic, it achieved remarkable results in the financial field last year. The transaction volume of the three core financial markets, including the Shanghai Stock Exchange, China Financial Futures Exchange, and Shanghai Futures Exchange, all achieved substantial growth. In the global financial center index ranking, Shanghai ranked third in the world for the first time. I believe that under the long-term strategy of 'continuously promoting the expansion of financial opening up' and 'comprehensively deepening the construction of an international economic and financial center', Shanghai's financial environment and financial strength will continue to improve."

Regarding investment opportunities, Wu Yue said that the report emphasizes "good education for children, excellent education for students, good rewards for labor, good doctors for the sick, nursing homes for the elderly, livable homes for the weak, and public support for the weak." In the long run, the healthcare industry will be the focus of resource investment after China enters an aging society. Moreover, with the gradual improvement of social security systems such as housing, elderly care, education, and welfare, residents' willingness and ability to consume will be greatly improved. As a barometer of the macro economy, the capital market is believed to have many investment opportunities in related fields.

Guangdong: GDP ranks first in the country for 32 consecutive years

According to the Guangdong government work report, last year, Guangdong's GDP exceeded 11 trillion yuan, an increase of 2.3%, and the total amount ranked first in the country for 32 consecutive years. During the "13th Five-Year Plan" period, Guangdong's R&D expenditure increased from 180 billion yuan to 320 billion yuan, and the proportion of GDP increased from 2.4% to 2.9%. The comprehensive regional innovation capacity ranked first in the country, and the number of valid invention patents and PCT international patent applications remained the first in the country.

In the financial sector, the Guangdong government work report proposed to promote the construction of a strong financial province, enhance the financial capacity of central cities such as Guangzhou and Shenzhen, deepen the reform of urban commercial banks and rural commercial banks, and expand and strengthen local financial institutions. We will do a good job in the construction of the Guangzhou Futures Exchange, support the Shenzhen Stock Exchange in improving the listing system and carrying out the pilot program of the "New Third Board" transfer. We will vigorously develop green finance. We will improve the local financial regulatory system, promote financial innovation under the premise of prudent supervision, and actively and steadily prevent and resolve risks such as illegal fundraising and small and medium-sized financial institutions.

In terms of specific measures, the Guangzhou Futures Exchange and the Shenzhen Stock Exchange have been included in the Guangdong government work report for two consecutive years. However, green finance, the construction of a strong financial province, and the pilot transfer of the "New Third Board" were all mentioned for the first time.

Experts say: We must make a good start on major projects this year

A senior researcher in the financial industry based in Shenzhen told the Securities Daily reporter that of the measures proposed in the Guangdong government work report, he is most concerned about four points: First, the Guangzhou Futures Exchange has been approved, but the specific details have not yet been released. It was originally planned to build a green financial product futures exchange. Will there be some relaxation in the listing of products in the future, such as whether energy-related futures products can be listed? Second, whether the first order of the "New Third Board" transfer pilot can be tried out first in the Shenzhen Stock Exchange? Third, the "Cross-border Wealth Management Connect" has been brewing for a long time. Can it be launched around the National "Two Sessions" this year? Fourth, digital currency has been piloted in Shenzhen before. Can it be truly promoted to the society this year?

In addition, the above-mentioned senior financial industry researchers said that it is also worthy of attention to accelerate the construction of international commercial banks in the Greater Bay Area; create a digital currency innovation pilot zone; increase the coordination and integration of agricultural funds, strengthen the agricultural supply-side structural reform fund, strengthen the agricultural commercial banks' agricultural support services, build the Guangdong Financial Support for Agriculture Alliance, and promote the high-quality development of agricultural and rural insurance.

The person believes that this year is the beginning of the "14th Five-Year Plan" and the most important tasks are, first, to implement various major projects and make a good start; second, to accelerate the construction of the Guangdong-Hong Kong-Macao Greater Bay Area International Science and Technology Innovation Center, especially to focus on Guangming Science City, Songshan Lake Science City, Guangzhou-Shenzhen-Hong Kong, Guangzhou-Zhuhai-Macao Science and Technology Innovation Corridors and other science and technology carriers to lay a solid foundation for the next step of Guangdong's innovation and development; third, to promote the connection of rules and mechanisms among Guangdong, Hong Kong and Macao, truly find a breakthrough, and implement policies.

Listed companies said: We hope to vigorously develop the digital economy

A person from a listed home appliance company in Guangdong told the reporter of Securities Daily that they are most concerned about the Shenzhen Stock Exchange's improvement of the listing system. Improving the listing system can attract more high-quality companies to go public and improve the quality of listed companies.

The above-mentioned company personnel said that they are also paying attention to the digital economy measures in the report. As a company with a large number of customers, some preference analysis of customer data is very important. However, the premise is that real data is needed, and there are formal means and channels to obtain data. The company must also have the ability to apply data, and serve the development of the company by sorting, processing and applying data, such as research and development. Therefore, it is hoped that the government can continue to vigorously promote the development of the digital economy and allow companies to have more data resources or data elements.

Institutional investors say: "New Four Modernizations" and other policies bring long-term investment opportunities

Wei Fengchun, chief macroeconomic strategy analyst at Bosera Fund, told the reporter of Securities Daily that judging from this year's Guangdong Provincial Government Work Report, the emphasis on support for finance, technology and agriculture is consistent with the "14th Five-Year Plan". The "14th Five-Year Plan" proposes the "new four modernizations": new industrialization, new urbanization, new informatization and new agricultural industrialization. As the vanguard of China's economy, Guangdong Province strives to implement the future direction proposed in the "14th Five-Year Plan", which is very valuable and meaningful.

In terms of investment, Wei Fengchun said that the report mentioned digitalization. Digitalization provides a good basic guarantee for China's future supply-side and demand-side reforms, as well as government management. From the perspective of the capital market, it is also a focus of future investment. In the long run, the "new four modernizations", digitalization, and agricultural supply-side reforms all have very clear investment logic. During the "14th Five-Year Plan" period, the investment target is the combination of traditional industries and new technologies, and new industries will also bring better investment opportunities.