Chen Liang, Secretary of the Party Committee and Chairman of China Galaxy Securities: Integrate into the overall development of the country and fulfill the original mission of serving entities

【Editor's Note】

The report of the 20th CPC National Congress pointed out that the focus of economic development should be on the real economy. As an important participant and builder of the capital market, securities companies play an important role in serving the real economy. On the new journey of comprehensively promoting the great rejuvenation of the Chinese nation with Chinese-style modernization, the Securities Association of China and China Securities News jointly launched a series of columns entitled "Studying, Publicizing and Implementing the Spirit of the 20th National Congress and the Securities Industry in Action", inviting the main responsible persons of some leading securities companies and securities companies with distinctive characteristics to focus on the content of securities companies serving the real economy, practicing new development concepts, implementing the cultural construction of the securities industry, fulfilling social responsibilities and promoting rural revitalization and common prosperity. Focus on sharing the exploration, practice and advanced experience of the securities industry in the process of serving the real economy, aiming to condense the consensus of the whole industry, step by step put the major decisions and deployments made by the 20th National Congress of the Communist Party of China into action, see the results, and jointly make due contributions to improving the function of the capital market and promoting the construction of a high-level socialist market economic system! This is the sixth of op-eds.

As of the end of the first half of 2022, its total assets exceeded 600 billion yuan and its net assets exceeded 100 billion yuan, and as an old leading brokerage, China Galaxy Securities Co., Ltd. (hereinafter referred to as China Galaxy Securities) ranked at the forefront of the industry in terms of comprehensive competitiveness. In the first three quarters, it helped enterprises raise a total of about 310 billion yuan at home and abroad; The Beijing Stock Exchange ranked second in the industry in terms of underwriting scale and number of account openings; As the "national team" of the securities industry, China Galaxy Securities fully serves the high-quality development of the real economy.

With two-wheel drive and coordinated development, China Galaxy Securities promotes the deep integration of the national strategy of serving the country and the company's business system. With finance serving the country and putting customers first, China Galaxy Securities fulfills its original mission of helping the development of the capital market and real economy.

"The report of the 20th National Congress further points out the direction for the socialist financial work with Chinese characteristics in the new era, provides a fundamental basis for doing a good job in the financial work in the new era, is a powerful ideological weapon to guide the high-quality development of China's capital market, and is a major programmatic document leading the reform and development of China's securities industry." Chen Liang, secretary of the party committee and chairman of China Galaxy Securities, said in an exclusive interview with a reporter from China Securities News a few days ago.

After the victory of the 20th National Congress of the Communist Party of China, the Party Committee of China Galaxy Securities proposed that the study, publicity and implementation of the spirit of the 20th National Congress of the Party should be regarded as the primary political task at present and for some time to come, and lead the vast number of cadres and employees to unify their thinking and actions with the spirit of the 20th National Congress.

Chen Liang said: "In the future, the party committee of the company will not forget its original intention, keep its mission in mind, deeply understand the inherent requirements of Chinese-style modernization, take the initiative to integrate into the overall situation of national development and comprehensively serve the real economy as the starting point and foothold of all work, and lead and drive the high-quality development of China Galaxy Securities on the great journey of socialist modernization." ”

Comprehensively serve the real economy

Fulfill the original mission of the capital market

As a central enterprise securities firm under Central Huijin, China Galaxy Securities has submitted a beautiful answer in serving the real economy and national strategy in recent years.

The data shows that as of the end of the first half of 2022, the company's total assets exceeded 600 billion yuan, net assets exceeded 100 billion yuan, and net profit increased from 11th in the industry in 2018 to 9th in 2019, 2020, and then 8th in 2021, with a three-year compound growth rate of 53%. At the same time, it has obtained a Class A AA rating in the evaluation of the practice of cultural construction of securities companies, ranking at the forefront of the industry in terms of comprehensive competitiveness and entering a new stage of high-quality development in an all-round way.

In fact, since 2017, China Galaxy Securities has relied on multi-level capital markets to serve the real economy and technological innovation. In the past five years, the company has served enterprises with a financing scale of more than 700 billion yuan, focusing on the needs of the technology industry, and has successively served Inspur Information, OFILM, Sanhuan Group, Ruipu Biotechnology, Tongyu Communication, Chengda Biotechnology, Huifeng Diamond and other enterprises to promote the implementation of scientific and technological innovation strategies; In the first three quarters of 2022, the company helped enterprises raise a total of about 310 billion yuan at home and abroad.

In China Galaxy Securities' blueprint for serving the real economy, its focus on the real economy has gone beyond the capital market itself. Chen Liang introduced to reporters the layout and efforts made by Galaxy Securities in recent years focusing on national regional coordination, internationalization level and future green development.

Focusing on the whole country, China Galaxy Securities proposed "coordinated development of financial empowerment services". Establish a comprehensive financial service base throughout the country, set up a number of regional thematic funds, and serve as the manager of the Hainan Free Trade Port Fund (10 billion yuan); Create a model of "Zhejiang Deqing Model" inclusiveness, cooperate deeply with regional equity markets, and invest in Beijing Equity Exchange Center and Jiangxi Stock Exchange Center, providing new channels for direct financing for small and micro enterprises; In the first three quarters of 2022, the Beijing Stock Exchange ranked second in the underwriting scale market and the second in the market in the number of accounts opened on the Beijing Stock Exchange (as of September 15, 2022); Working closely with local governments, it has joined 35 local government bond underwriting groups across the country, integrated into the local development pattern, helped stabilize investment and expand investment to support entrepreneurship and entrepreneurship, and underwrote about 110 billion yuan of local government bonds, a year-on-year increase of more than 230%.

Focusing on the world, China Galaxy Securities actively improves the international level of service "dual circulation". The company gave full play to the advantages of overseas layout, assisted the Ministry of Finance in issuing RMB treasury bonds in Macau, and helped Lepu Medical successfully issue Swiss GDR; For the first time, Chinese securities firms introduced well-known domestic public funds into the Southeast Asian market for sale, and underwrote the Polish government's "Belt and Road" panda bonds for the first time, serving the construction of capital market connectivity.

Looking to the future, China Galaxy Securities adheres to innovative services for "carbon neutrality" and green development. The company is the first in the industry to deploy ESG and dual carbon research, and has served as the director unit of the Green Finance Committee of the Asian Financial Association for three consecutive years, providing suggestions for promoting the development of green finance; Underwriting the first green vehicle installment asset-backed securities, and introducing cross-border funds through Bond Connect to form an active exploration and forward-looking demonstration of cross-border green credit asset securitization; Launched the world's first low-carbon ETF covering the Asia-Pacific region and successfully listed in Singapore, promoting the realization of the "dual carbon" goal.

In addition, China Galaxy Securities also fulfills its mission to serve common prosperity. Up to now, the company has used futures derivatives tools to serve 592 small and medium-sized enterprises, helping enterprises resolve price risks, stabilize operating costs, and help enterprises develop healthily. To meet the diversified investment needs of residents, a total of 552.3 billion yuan of financial products have been sold in the past five years, and the sales and service scale of inclusive fixed income wealth management products has exceeded 400 billion yuan, effectively promoting the preservation and appreciation of customer assets. Chen Liang said.

"Development is the top priority for the party to govern and rejuvenate the country. Adhering to high-quality development and comprehensively serving the real economy is the requirement and core mission of the times for the development of China's securities industry, and it is also the common aspiration of all Galaxy people. Chen Liang said, "As a central enterprise securities firm under Central Huijin, China Galaxy Securities earnestly fulfills the main business of state-owned financial enterprises, adheres to the strategy of high-quality development and serving the country, adheres to the comprehensive service of the real economy, continues to strengthen the mission of the 'national team' of the securities industry, and contributes to the deepening reform of the capital market and the sustainable development of the real economy." ”

Insist on relying on and serving entities

Curb the tendency to "turn from real to virtual"

Continuously improving the quality and efficiency of serving the real economy is not only the concrete practice of the capital market to fulfill its original intention and mission, but also the only way for the development of the capital market in the new era.

"Entering the stage of high-quality development and providing efficient financial support for the majority of scientific and technological innovation enterprises and small, medium and micro enterprises is inseparable from the effective services of the capital market." The capital market has played an irreplaceable and important role in resource allocation, risk mitigation, policy transmission, and expectation management. To build a standardized, transparent, open, dynamic and resilient capital market, it is necessary to improve the basic system of the capital market, properly control the entrance and exit of the market, and strengthen the supervision of the whole process of trading. It is necessary to provide high-quality financial services around the development of the real economy, especially the construction of a modern economic industrial system, market system, regional development system, green development system, etc., and build an all-round and multi-level financial support service system such as venture capital, stock market and bond market. Chen Liang told reporters.

Data show that since the 18th National Congress of the Communist Party of China, the adaptability of the capital market to the real economy has been greatly enhanced, and the cumulative stock and bond financing has reached 55 trillion yuan. In particular, from 2017 to 2021, the total amount of initial public offerings (IPOs) and refinancing was 5.2 trillion yuan, and the exchange bond market issued 33.9 trillion yuan. Among them, the total amount of IPOs and refinancing in 2021 was about 1.5 trillion yuan, and the total financing in the stock and exchange bond markets exceeded 10 trillion yuan, both reaching record highs. By the end of 2021, the stock of direct financing was 98.8 trillion yuan, accounting for about 31.5% of the stock of social financing.

In addition, relevant statistics show that as of November 15, 2022, there were a total of 4,999 listed companies on the Shanghai and Shenzhen exchanges, an increase of about double that of 2012. Among them, the number of companies on the Science and Technology Innovation Board is 485, and the number of ChiNext companies is 1215. "The two sectors provide diversified and differentiated financing services for enterprises of different types and life cycles, actively promote the integration of technology and capital, and drive a virtuous circle between finance and the real economy." Chen Liang thought.

Practice has proved that the capital market cannot be developed arbitrarily in isolation from the actual needs of the real economy, otherwise it will inevitably affect the security and stability of the economy and finance.

"From an international point of view, the 1929 crisis, the 1997 Asian financial crisis and the 2008 international financial crisis in history have inherent defects in the financial system, but they are all greatly related to the separation of financial development from the real economy. To this day, the global economy has not fully recovered from the shadow of the 2008 financial turmoil, and the relevant reflection in the financial theory community has never stopped for more than a decade. From a domestic point of view, the proliferation of 'shadow banking' in previous years, the disorder of asset management business, the idling of market funds and other chaos have also affected the normal operation of the economic and financial order. Chen Liang said.

After some thinking, Chen Liang had another perspective on serving the real economy. "Summing up the experience and lessons of domestic and foreign financial markets, from the perspective of overall security and development, the development of China's capital market in the new era must properly handle the dialectical relationship between the real economy and the capital market, always adhere to relying on the real economy and serving the real economy, promote a virtuous cycle between the real economy and the capital market, guard against capital idling and financial bubbles, ensure balanced and orderly market operation, and resolutely curb the erroneous tendency of 'turning from real to virtual'." He said.

Chen Liang said that as a securities practitioner, it is necessary to comprehensively study and implement the decision-making and deployment of the 20th National Congress of the Communist Party of China, fully realize that high-quality development is the primary task of building a modern socialist country in an all-round way, focus securities work on serving the real economy, improve the scale and quality of direct financing, improve the service functions of the capital market, promote a virtuous cycle of finance, industry and science and technology, ensure the resilience and safety of important industrial chains and supply chains, and effectively enhance the comprehensive competitiveness of the real economy.

Keep in mind the responsibilities of financial work

Integration into the overall development of the country

For the direction of future financial work, Chen Liang has a very clear idea. "The report of the 20th National Congress further points out the direction for the socialist financial work with Chinese characteristics in the new era, provides a fundamental basis for doing a good job in the financial work in the new era, is a powerful ideological weapon to guide the high-quality development of China's capital market, and is a major programmatic document leading the reform and development of China's securities industry." He said.

From the perspective of China Galaxy Securities' own development, Chen Liang told reporters that the company will follow the new round of strategic planning, adhere to the customer-centric concept, and strive to draw a business blueprint of "five-in-one, three-in-one". "On the basis of the good development trend of the previous three years, with the help of this round of strategic planning period, we have completed the real transformation from traditional investment banks to modern investment banks, and laid a solid foundation for marching to higher-level goals in the future, making China Galaxy Securities a respected investment bank." The respected symbol is to have more positive value creation and guidance for the country, society and industry, more to highlight corporate social responsibility, and to increase the sense of gain of customers and shareholders and the satisfaction of employees. ”

He emphasized that the five major businesses in the strategic plan of China Galaxy Securities are closely centered on the real economy: fully integrating into the blood of the real economy, committed to becoming a "leader" in residents' wealth management, practicing the requirements of inclusive finance, enhancing investors' sense of gain, and growing together with residents' wealth; Directly meet the financing needs of the real economy, and strive to become the "guardian" of government and enterprise customers, provide comprehensive investment and financing financial services throughout the life cycle, and effectively support the transformation and upgrading of the real economy and self-reliance and self-improvement of science and technology; Improve capital market services that match the real economy, strive to become a "companion" for institutional customers, comprehensively improve professional standards and service coverage, and jointly serve the construction of China's financial system; Expand the new pattern of real economic development, strive to become a "promoter" of the dual-cycle development pattern, promote the domestic and international dual circulation and the construction of the "Belt and Road", and attract the agglomeration of global resources and elements with the domestic circulation; Meet the transactional needs of real economy risk management and other transactions, and strive to become a "demonstrator" of the capital market, help the capital market improve transaction activity, product richness, and build an endogenous stability mechanism of the capital market.

"Facing the future, China Galaxy Securities will take high-quality development as the keynote, earnestly fulfill the social responsibility of state-owned financial institutions, and comprehensively serve the development of the real economy." Chen Liang said that the company will take multiple measures to promote the implementation of relevant work from the following aspects: strengthen the party's leadership, adhere to the comprehensive and strict management of the party, take the study and implementation of the spirit of the 20th National Congress of the Party as an important political task, deeply grasp the spiritual essence and core essence of the 20th National Congress, conscientiously study and understand thoroughly, integrate and penetrate, and strive to apply what it has learned; Continuously enhance the business capabilities of the capital market, actively serve the real economy, strive to broaden corporate financing channels, reduce corporate financing costs, increase the support and cultivation of high-quality innovative enterprises in equity investment, alternative investment, private equity investment funds and other business lines, and promote scientific and technological innovation and industrial upgrading. Actively implement the major strategic deployment of "three new and one high", support the development of "specialized, specialized and new" enterprises, strategic emerging industries, and cutting-edge science and technology enterprises, and guide capital elements to gather in the field of scientific and technological innovation. Support the development of manufacturing industry, especially advanced manufacturing, important links and core node enterprises in the industrial chain, enrich the supply of supply chain financial services, and help stabilize the chain and supplement the strong chain. It is necessary to resolutely guard the bottom line of risk, resolutely implement the work requirements of regulatory authorities, practice the industry culture of "compliance, integrity, professionalism and stability", adhere to steady development, and ensure stable and long-term development.

"He who seeks the elders of wood will be firm in its roots; Whoever desires to flow far will drown its source. "At any time, the development of the real economy is an important foundation for the mainland to maintain healthy and stable economic operation and continuously enhance its international competitiveness."

"Under the leadership of the company's Party Committee, all cadres and employees of China Galaxy Securities will abide by the integrity and innovation, move forward courageously, improve their political standing, keep in mind the 'great of the country', never forget the political and people's nature of financial work, integrate China Galaxy Securities' own work into the overall situation of national development with a higher fighting spirit, deeply implement the spirit of the 20th National Congress of the Communist Party of China, comprehensively serve the real economy, and make Galaxy contributions to the realization of Chinese-style modernization." Chen Liang said.

Editor: Yu Hongbo