Putuo partners stock exchange to drive key local enterprises
PUTUO District government signed a memorandum of strategic cooperation with Shanghai Stock Exchange on April 2 to provide financial services for its key enterprises.
The cooperation will focus on re-structuring and listing, mergers and acquisitions as well as the issuance of corporate bonds, along with in-depth and long-term cooperation in training, risk prevention and control.
According to the memorandum, Putuo will determine the enterprises that are about to be listed and recommend the list to the stock exchange. The exchange will then provide target-ed market services based on the needs of these key regional enterprises.
The financial sector in Putuo has developed rapidly.
Its proportion of tax revenue at the district level has increased significantly, said Putuo District Director Zhou Minhao.
In January and February, district-level income from financial sectors in the district reached 184 million yuan (US$27.39 million), a 178 percent increase from last year’s figure and accounting for 9.96 percent of total district income. There are six listed companies in Putuo, and another 10 will be listed soon.
Putuo will make best use of the opportunities brought by the new technology innovation board and reform of the pilot registration system, Zhou said.
The new technology innovation board, a Nasdaq-style tech board announced in November by President Xi Jinping, is expected to start trading in the middle of the year. It represents a new era for the Chinese capital market.
Under the new cooperation, Putuo will share information on regional economic development, industrial development and the capital operations of its key regional enterprises with the exchange.
The exchange will also share with Putuo information on the policies and regulations of the capital market, as well as information on capital operations such as restructuring, listing, restructuring and issuance of corporate bonds.
Both sides will offer counseling ser-vices with experts and explain policies and regulations through symposiums, forums and training courses. Putuo-based enterprises are expected to enhance their capital operations and become stronger with the help of the capital market.
In 2016 and 2017, the district-level tax revenue of the financial industry in Putuo increased by about 30 percent each year.
Last year, a total of 1,528 companies operating in financial services in Putuo contributed a total district-level tax of 565 million yuan, an 82 percent in-crease over a year before.