The Shenzhen Stock Exchange recently organized a forum on the development of ETF market in 2020, focusing on the implementation of the spirit of the Central Economic Work Conference and the requirements of the CSRC to comprehensively deepen the reform and deployment of the capital market, reviewing and summarizing the construction of the ETF market in Shenzhen in 2019, studying and promoting the key work in 2020, further promoting the healthy development of the ETF market and better serving the high-quality development of the economy.
The meeting informed the development and construction of ETF market in Shenzhen in 2019. In 2019, Shenzhen Stock Exchange pushed the Shenzhen ETF market to achieve positive results in enriching product categories, optimizing institutional mechanisms, deepening market reform, serving the \"two-district\" construction, and serving the real economy. One is to continue to promote product innovation. Successfully launched the first batch of domestic commodity futures ETF, Guangdong-Hong Kong-Macau Greater Bay Area innovation 100 ETF and local debt ETF and other innovative products to further enhance the ETF market service real economy and regional development capacity. At the end of 2019, the total value of ETF assets in Shenzhen was 115.7 billion yuan, an increase of 58 percent over the end of last year and a full-year turnover of trillion yuan. Second, improve the market supporting mechanism. Optimize ETF trading settlement and cross-market stock ETF redemption model, effectively improve the efficiency of the use of investors'funds and shares, Shenzhen ETF liquidity as a whole increased by 74%; temporarily exempt ETF market start-up fee, monthly fee, reduce the cost of product development and liquidity service provider funds. Third, the smooth introduction of the Shenzhen market's first derivatives, Shanghai and Shenzhen 300 ETF options, enrich investor risk management tools, further promote the ETF market to become bigger and stronger, better attract long-term funds into the market. Fourth, strengthen market cultivation and investor education. In 2019,37\" ETF lecture hall \"training activities were held in major cities throughout the country to share the investment concept of value investment, long-term investment with nearly 10,000 investors.
The conference focused on the issues of optimizing ETF operation mechanism, developing innovative products, introducing long-term funds, including optimizing ETF market-making, requisitioning and redemption, trading and settlement system, reducing the operating costs and operational risks of all parties involved in the market, and enhancing ETF market liquidity; enriching ETF market innovation product line, increasing the supply of innovative products to meet diversified investment and financing needs; constructing ETF product development ecological system, attracting insurance, banking financial subsidiary and other institutions to participate in ETF investment by means of abundant risk management tools. Shenzhen Stock Exchange said it will fully absorb the views of the parties to further play the role of ETF products to ensure the smooth operation of the ETF market in Shenzhen.
The meeting stressed that in the new year, the Shenzhen Stock Exchange will, in accordance with the unified arrangement of the CSRC, push forward the task of deepening the reform of the capital market in an all-round way, promote product innovation, improve the basic system, optimize the market mechanism, enhance market vitality and resilience, and continuously enhance the ability of the capital market to serve the real economy. The first is to continuously improve the product system, vigorously develop the core ETF products, expand the industry theme category ETF products scale, promote the research and development of active management ETF, crude oil ETF, cross-bank market bond ETF and other innovative products. The second is to further consolidate the construction of the infrastructure system, provide more market-needed institutional supply, study the introduction of ETFs collection and purchase mechanism, promote connectivity with overseas markets, strengthen the regulation and supervision of ETFs, and ensure the healthy development of the ETF market. Third, it is necessary to carry out in-depth marketing and teaching services, gather consensus on development, bring all parties into full play, strive to build a \"compliance, integrity, professionalism and stability\" industry culture, and make every effort to create a capital market product system commensurate with the first demonstration zone of socialism with Chinese characteristics.