State-owned enterprises are a vital force in China's economy and are closely linked to national security and the lifeblood of the national economy, while the private economy, as an important part of the national economy, is indispensable and significant in promoting the high-quality development of China's economy.

Listed companies are the “foundation” of the real economy. SZSE has recently studied and formulated the Special Work Plan for Further Enhancing the Value Creation and Discovery Function and Improving the Quality of Listed State-owned Companies in SZSE and the Work Plan for Supporting Listed Privately-owned Companies to Focus on Their Main Business and Develop Stably based on the relevant requirements of the Work Plan for Implementation of the Three-year Action Plan to Enhance the Quality of Listed Companies (2022-2025) of the exchange, further clarifying the work ideas and specific measures to help state-owned enterprises to enhance the value creation and discovery function as well as private enterprises to focus on their main businesses and enhance their quality and efficiency, so as to boost the high-quality development of listed companies in SZSE.

At present, the capital market in SZSE is becoming critical forefront for deepening the reform of state-own assets and state-owned enterprises. As at 30 April 2023, there have been 607 state-owned listed companies in SZSE, with a total market capitalization of CNY 9.81 trillion, representing an increase of approximately 40% and 210% in number and market capitalization compared to ten years ago, respectively. Specifically, there are 180 listed central enterprises, with a total market capitalization of CNY 4.04 trillion and a median P/E ratio of 28.69 times, higher than the overall level of state-owned listed companies in SZSE and A-share listed state-owned companies. In the past ten years, listed state-owned companies in SZSE have raised more than CNY 900 billion through IPOs, private placements, rights issues and convertible bonds issuance, effectively supporting the smooth progress of various major projects related to the people’s livelihood, and the amount of material assets restructuring transactions was approximately CNY 1.4 trillion. During the implementation of the three-year action plan for the reform of state-owned enterprises, approximately 30 state-owned listed companies in SZSE have introduced new strategic investors with a ownership of more than 5%, and more than 150 share incentive or employee stock ownership plans have been implemented in SZSE. The compound growth rates of operating revenue and net profit of state-owned enterprises in SZSE in the past three years were 11.6% and 9.4% respectively, reflecting the remarkable results of reform and development.

SZSE is the main battleground for the private economy. As at 30 April 2023, the number of listed privately-owned companies in SZSE exceeded 2,100, with a total market capitalization of approximately CNY 24 trillion, accounting for 75% and 68% of the overall market in SZSE, respectively. Specifically, the number of companies in strategic emerging industries accounted for nearly 50%, representing a market capitalization of more than 60%, and the aggregation effect of emerging industries represented by new-generation information technology, biological medicine and new materials was obvious. Since 2011, the average annual average operating revenue of listed privately-owned companies in SZSE has increased from CNY 2,276 million to CNY 5,528 million, and the R&D intensity has doubled. The number of companies with a market capitalization of over CNY 50 billion reached 61, and the number of companies with a market capitalization of over CNY 100 billion grew from 0 a decade ago to 27 at present. A number of new economy benchmark enterprises with demonstration effects, such as CATL, BYD and Mindray, were cultivated. The compound growth rates of operating revenue and net profit in the past three years were 12.91% and 10.5% respectively, demonstrating strong resilience and vitality.

The special plan for state-owned enterprises further focuses on boosting value creation and discovery, and comprehensively serving the high-quality development of state-owned listed companies in SZSE with “five main lines of work” to accelerate professional integration, strengthen intrinsic value creation of enterprises, and achieve the “two specific goals” of improving corporate governance and enhancing market recognition and value discovery. First, the cooperation mechanism was deepened. SZSE has continuously strengthened strategic cooperation with state-owned enterprises, deepened information sharing with state assets regulatory authorities and established a regular collaborative mechanism for risk mitigation with local governments and state-owned assets regulatory authorities. Second, in-depth visits and research were carried out. SZSE visited major central enterprise groups and listed companies to respond to the concerns of market players. Third, a series of exchange events were held. SZSE organized collective performance presentations in the “Listing Hall” to drive the regular convening of performance presentations by listed state-owned companies. It carried out exchange events for institutional investors of listed central companies in Shenzhen market, and held regular seminars and special training and cultivation activities for central and state-owned enterprises in Shenzhen market to enhance policy transmission, market recognition and value realization. Fourth, the guarantee of rules and policies was consolidated. SZSE promoted market-oriented reform of the M&A financing system, improved the differentiated information disclosure mechanism and ESG information disclosure rules, promoted full coverage of incorporation of party building into the Articles and Association, and optimized the environment for independent directors to perform their duties. In addition, it guided listed state-owned companies in Shenzhen market to make good and full use of refinancing, M&A and restructuring, fixed income and share incentive tools, accelerated the development of a series of indices and index products related to state-owned enterprises in Shenzhen market, and continuously perfected the price discovery and promotion mechanism. Fifth, typical cases were effectively promoted. SZSE promoted typical practices, successful experiences and reform effects, and gave full play to the leading and demonstration role of leading enterprises. Special studies on deepening the reform of state-owned enterprises and corporate governance were conducted to play the guiding and driving role of the academic field. The publicity and guidance of quality state-owned enterprises were enhanced to effectively improve their influence.

The special work plan for private enterprises is based on service, and 16 specific work initiatives have been developed around striving to address the most concerned, direct, realistic and urgent livelihood issues, creating an atmosphere of focusing on the development of the main business, improving the policy guarantee for high-quality development, strengthening the leadership of company regulation and promoting the active fulfillment of social responsibilities, mainly including: First, practical measures were taken to effectively respond to the concerns of private companies. SZSE collected the actual problems and core demands faced by companies’ development through visits and research, analyzed and studied them promptly and took differentiated measures to effectively respond to their concerns. With a focus on key areas such as advanced manufacturing, digital economy and green low carbon, regular activities such as the “Hub of Innovation Exchanges” were carried out. Platforms such as “Growth Connect” and “V-Next” were fully leveraged to provide companies with matching services for industry chain investment and financing as well as resource support for development. SZSE also organized special collective performance presentations for listed privately-owned companies and carried out a series of investor exchange activities on “getting to know listed privately-owned companies in Shenzhen market” to enhance value discovery and value recognition. Second, a good environment for the high-quality development of private companies was created. SZSE promoted the optimization of basic systems for share incentive, financing and M&A, quickly reviewed projects that meet the conditions for classification, and encouraged and supported companies to fully leverage capital market tools. It continuously promoted the issuance of various types of bonds and asset-backed securities products by listed privately-owned companies, studied and developed indices and ETF products related to private enterprises in Shenzhen market, and increased the supply of innovative products. The practice of information disclosure on sustainable development of high-quality private enterprises was summarized and relevant information disclosure guidelines were formulated to guide more private enterprises in Shenzhen to practice the green development philosophy. Third, private companies were supervised to focus on the standardized development of their main business. SZSE optimized the system of self-regulatory rules, implemented the reform plan of the independent director system, strengthened the training of “key minority”, and enhanced the endogenous dynamics of corporate governance. Differentiated strategies were implemented for different companies with phased difficulties and risks, and plans to address the business development dilemma of companies were explored. SZSE guided leading companies to improve the quality of information disclosure and financing and M&A to play their leading role. Additionally, SZSE strengthened the publicity on the effectiveness of focusing on the development of the main business, experience and practices, and typical cases, so as to form a consensus in the whole market to support private enterprises to focus on the stable development of their main business.