Li Hui, deputy general manager of Shenzhen Stock Exchange: Provide direct financing support for the development of green industries

Kangxi Kang, Huang Yiling, China Securities News, China Securities Network

On October 29, Li Hui, deputy general manager of the Shenzhen Stock Exchange, said at the 2021 Tianfu Financial Forum that the capital market can play an important role in guiding the allocation of resources to the green and low-carbon field, reasonably determining the pricing of green and low-carbon assets, innovating tools, and alleviating risks in the green and low-carbon field. As the core institution and important platform of the capital market, after more than 30 years of development, the Shenzhen Stock Exchange has initially formed a market system with perfect basic functions, obvious plate characteristics, transparent regulatory norms, safe and reliable operation, comprehensive and efficient services. All along, the Shenzhen Stock Exchange has been actively implementing the concept of green sustainable development, giving full play to the function of market hub, promoting the improvement of resource allocation efficiency, and actively providing direct financing support for the development of green industries. Take a series of measures to guide financial markets to serve carbon peaking and carbon neutrality.

The first is to support direct financing of green industries and build a multi-level development platform. In recent years, a number of major reforms in the capital market have been landed, the Shenzhen Stock Exchange has successfully completed the reform of the ChiNext Board and piloted the registration system, smoothly implemented the merger of the Shenzhen Main Board and the SME Board, and formed a clear and distinctive main board plus the ChiNext Shenzhen market system. The market mechanism has been continuously optimized, the structure has been continuously improved, the function has been effectively improved, and the inclusiveness and coverage have been further improved.

The second is to promote the construction of the green exchange bond market and increase the supply of innovative products. Since the launch of the green corporate bond pilot in 2016, the Shenzhen Stock Exchange has vigorously promoted the innovation of green fixed income products, combining green development with financial instruments such as special bonds for the income of asset securitization projects to better meet the needs of enterprises. Realize immediate reporting and review, special personnel special review, improve efficiency.

The third is to continue to improve the requirements for environmental protection information disclosure and encourage listed companies to fulfill their green responsibilities. In 2006, the Shenzhen Stock Exchange took the lead in issuing the social responsibility guidelines for listed companies, and in 2010, it incorporated the guidelines into the standardized operation guidelines of listed companies, promoted the normalization and standardization of social responsibility information disclosure, implemented a hierarchical environmental information disclosure system, urged key polluting enterprises to disclose environmental information in accordance with requirements, included the disclosure of social responsibility reports and environmental protection responsibilities of listed companies into the annual assessment, and guided companies to effectively assume the main responsibility for environmental governance. Listed companies are encouraged to voluntarily disclose the measures and effects taken to reduce carbon emissions.

The fourth is to enrich investment tools such as green indices and guide the direction of green investment in the market. The Shenzhen Stock Exchange is a pioneer in green indices, launching The first environmentally-themed stock index in China as early as 2008. Up to now, 28 green indices covering ESG themes such as environmental protection, responsibility and governance have been successively launched to guide medium- and long-term funds to allocate green industries. Recently, the Shenzhen Stock Exchange has successively released green indices such as the National Securities Green Index and the Carbon Neutral Technology Power Index. It further presents the operational characteristics of listed companies in the field of green finance, and helps to achieve the strategic goal of carbon peaking and carbon neutrality. The fifth is to deepen foreign exchanges and cooperation, promote the development of international green finance, and carry out extensive exchanges and cooperation with international institutions.