China Securities Regulatory Commission: Steadily Expand The Pilot Of Stock Option To Realize Long-Term Incentive For Innovation, Entrepreneurship And Creative Industries

On October 18, the office of the State Council of the people's Republic of China held a press conference on how to promote the implementation of Shenzhen's comprehensive reform pilot project and get effective results.

Recently, the "comprehensive reform pilot implementation plan for Shenzhen to build socialism with Chinese characteristics pilot demonstration zone (2020-2025)" issued by the central office and the State Council clearly proposed to support Shenzhen to take the lead in capital market construction.

Specifically, it includes promoting the gem reform and pilot registration system, and innovating domestic issuance of stocks or depository receipts (CDR). We will establish a mechanism for companies listed on the new third board to be listed on the second board. We will optimize the market access environment for private equity funds. We will explore and optimize the market access and development environment for venture capital enterprises. We will carry out pilot projects of real estate investment trust funds in the field of infrastructure in accordance with laws and regulations. On the basis of the Shenzhen Branch of the digital currency Research Institute of the people's Bank of China, the financial technology innovation platform is established. We will support the pilot test of internal closure of digital RMB, and promote the R & D and application of digital RMB and international cooperation.

At present, some reform items have been accelerated, including the gem reform of the capital market and the pilot registration system has been successfully implemented; the pilot test of digital RMB internal closure is being carried out in Shenzhen; the registration system is implemented simultaneously for refinancing and major asset restructuring.

Yan Qingmin, vice chairman of China Securities Regulatory Commission, said at the press conference that in the next step, the CSRC will seriously implement the tasks related to the capital market in the implementation plan and the first batch of comprehensive reform authorization list, which can be summarized as "five efforts":

everything Efforts should be made to optimize the service function of the gem which has already implemented the registration system, better play the gem's service to the growth oriented innovative and entrepreneurial enterprises, and accumulate experience for the stock market reform.

The second is to support Shenzhen Stock Exchange to deepen plate reform and build a high-quality innovation capital center and a world-class exchange.

Third, efforts should be made to support the listed companies listed on the new third board. At present, guidance has been issued on the selected layers of the new third board to be listed on the science and technology innovation board and the growth enterprise market. Relevant rules are being formulated to open up an organic connection channel for the multi-level capital market.

Fourth, it is Efforts should be made to steadily expand the pilot stock options to better meet the risk management needs of investors, and at the same time make institutional arrangements for the realization of long-term incentives for innovative and entrepreneurial creative industries.

Fifthly, efforts should be made to improve the transparency and efficiency of private fund managers and product registration and filing, so as to create a good environment for the development of private equity industry We should support the deep integration of science and technology and finance, and more vigorously promote the development of Shenzhen to a higher level and higher level 。

According to the deployment of supporting Shenzhen to build a leading demonstration area of socialism with Chinese characteristics, Shenzhen aims to build a modern, international and innovative city, and to become a city of innovation, entrepreneurship and creativity with global influence.

At present, Shenzhen's scientific and technological innovation work has been in the forefront of the country. For example, in 2019, Shenzhen's total social R & D investment reached 132.8 billion yuan, accounting for 4.9% of GDP. This figure is in the forefront of the country and among developed economies. Shenzhen ranks the first in the country in the number of patent applications (1.75 million) in the country in 2019, accounting for 1.5 million patent applications in China. In 2019, Shenzhen has 17000 national high-tech enterprises and more than 50000 science and technology-based small and medium-sized enterprises. Shenzhen has also cultivated a number of world-class innovative enterprises such as Huawei, Dajiang and Tencent. Shenzhen has built an incubation carrier of 500 science and technology enterprises, and gathered one third of the venture capital institutions in China. Shenzhen is a real venture capital.

Xu Nanping, Vice Minister of the Ministry of science and technology, said at the press conference that the Ministry of science and technology will take the construction of innovative city as the starting point and support Shenzhen to speed up the construction of a number of major innovation platforms, mainly to achieve the "three first-class". It is necessary to build a first-class innovation environment, gather first-class innovative resources, and attract first-class innovative talents, so as to make Shenzhen's innovative city construction in the forefront of the world.

Chen Rugui, deputy secretary of the Shenzhen Municipal Party committee and mayor of the Shenzhen Municipal People's government, said at the press conference that Shenzhen will implement the strictest protection of intellectual property rights and create a first-class legal environment for enterprises.