Shenzhen Stock Exchange signs a strategic cooperation agreement with China Railway

On January 8th, a high-level conference was held in Beijing between Shenzhen Stock Exchange (SZSE) and China Railway Corporation, where both parties entered into a strategic cooperation agreement.

Wu Lijun, Secretary of the Party Committee and Chairman of the Administrative Committee of SZSE, and Lu Dongfu, Secretary of the Party Committee and General Manager of China Railway were present at the signing ceremony. The cooperation is a further step taken by SZSE to serve the real economy and assist in state-owned enterprise reform with its multi-layer capital market.

In recent years, SZSE is committed to improving the construction of a multi-layer capital market, tries to give full play to the role and strengths of the capital market to facilitate the state-owned enterprise reform, and endeavors to serve the real economy by making use of the living water of finance. So far, SZSE has forged in-depth cooperation on financial services with over 20 state-owned corporations including China Merchants Group, China National Nuclear Corporation, China Shipbuilding Industry Corporation, China Chengtong Holdings Group Ltd. and China Electronics Technology Group Corporation, and has organized a series of training programs on state-owned capital operation. Besides, SZSE has also increased its support and services to state-owned enterprises in pre-listing training, mixed-ownership reform, M&As and refinancing, debt financing and assets securitization, with an aim to preserve and increase the value of the state-owned capital and to push the enterprises to grow stronger and larger.

The financial services sector of SZSE highly corresponds to the direction of future development of China Railway, and there are bright prospects for cooperation between the two sides. China Railway is quickening its pace to build a corporation-based operating mechanism, actively pushing forward the reform of its investing and financing system and the capitalization of its assets, and working on a plan for capital operation based on the current listing platform and for nurturing quality joint-stock companies for listing. Furthermore, China Railway also strengthens railway planning and construction, promotes the innovation of applied technologies and enhances the role of railway in providing services for and support to the Belt and Road construction.

As per the agreement, both sides, with complementing strengths and advantages and shared resources, shall conduct in-depth cooperation in debt financing and assets securitization, business pre-listing nurturing, connecting services platforms for the purpose of integrating production and financing activities, standardizing and regulating the development of business, risk prevention, and researches on cross-border business. Both sides shall build a stable and effective mechanism for cooperation and communication in the long term to achieve sound development. Next, both parties shall focus their attention and efforts to push through the issuance, listing and trading of railway construction bonds via SZSE to diversify the financing channels for state-owned enterprises while increasing the proportion of direct financing.

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