The picture above shows Zhang Yujun, General Manager of Shenzhen Stock Exchange. (Picture source: Sina Finance)
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The 6th China Securities Investment Fund International Forum was jointly organized by Shenzhen Stock Exchange, Capital Market Research Association and Shenzhen Municipal People's Government. It was held at Shenzhen Wuzhou Hotel at 8:30 a.m. on December 2, 2007 (Sunday). The theme of this meeting is: the sustainable, stable and standardized development of the fund industry. Sina Finance will broadcast the conference live as an exclusive portal website. The following is a speech delivered by Mr. Zhang Yujun, General Manager of Shenzhen Stock Exchange, on the theme of "Strengthening Infrastructure Construction, Establishing Rational Investment Concept, Promoting the Sustainable Development of the Fund Industry".
Zhang Yujun: Distinguished guests, friends from the fund industry and related industries, welcome to the fund forum. This is the sixth fund forum held by our Exchange as one of the sponsors, which has been strongly supported by Chairman Minjie. From the theme of the forum to the organization of the forum, to the final arrangement, he personally asked for very clear requirements. Also give me a brief introduction to the following nine tasks.
Zhang Yujun: As far as the fund industry is concerned, I am a layman. I really don't know what to say. This opportunity is more of a learning opportunity for us. Now that we have been asked to tell, today I would like to take this opportunity to tell you two stories about our recent thinking about the securities market.
Zhang Yujun: One is that every time we meet with President Gui in Beijing, we have a question about how to view the basic situation of the capital market and how to ask us, because everyone has noticed that in the past three years, the fund industry and the securities industry have also risen rapidly. President Zhu's market value has reached more than 25 trillion, and the fund industry has reached more than 300 billion to more than 300 billion, Indeed, the whole industry faces an important problem, how to view our capital market situation; As for the fund industry, how to view the situation of the fund industry? President Gui made a summary of the past ten years today. I think it has been quite clear. About the achievements of the past ten years, the current problems, and the future development direction, he gave a comprehensive description.
Zhang Yujun: One of my stories today is about the situation; One is the story of warrant trading. Just now, President Zhu mentioned the importance of market participants in warrant trading. Just now, President Zhu made a very brilliant speech, so after two stories, I would like to talk about some experience. This is a report on this forum.
Zhang Yujun: When talking about the situation of the fund industry and the securities industry, we saw the increase of various data. There is no doubt that we can be proud of our achievements, which is unprecedented and very gratifying. At the same time, on different occasions CSRC Leaders also stressed that the basic characteristics of the capital market's emerging and transition have not changed, so how to understand that there is no change? Recently, I mentioned several factors on several occasions, which may not be accurate. To report to you, our mainland market has ranked sixth in the world, and the fund industry has a market value of 3 trillion yuan. What I understand deeply is that there is no fundamental change, Mainly from the five participants mentioned by Zhu Congjiu just now, there is no basic change in the broad understanding of the five participants.
Zhang Yujun: Recently we were studying the document of the 17th National Congress of the Communist Party of China, and the first topic led by the meeting was also called "How to correctly treat the basic nature and characteristics of the capital market". So I will talk about five basic changes, including from the perspective of the industry, investors, regulators, market organizers, and financiers, From the perspective of corporate governance, we consider the emerging and transition characteristics of the capital market. Although the capital market has made significant changes, the emerging and transition has not fundamentally changed these five elements. Not only the securities industry, but also our fund industry, and even the derivatives industry do have a problem that needs reflection. Let me briefly talk about this issue from five perspectives, including product industry governance, risk management, system construction, etc.
Zhang Yujun: Recently, we have a simple thought about the current situation of China's capital market. Second, I want to tell the story of warrant trading. Recently, Song Liping of our exchange led the research on product trading. We have many insights and feelings in the innovation of warrants recently. You can take a look at our four warrants of Shenzhen Stock Exchange. Let's see if there is one side of the five I just mentioned. One is to tell the story of warrants from near to far.
Zhang Yujun: The first one is our OCT warrant. Our subscription period is five days. The last day mobilized all the media, listed companies, and member units to require investors to exercise their rights. Because the OCT is about 55 yuan, the purchase price of the warrant is less than 7 yuan, and the OCT can be purchased with 7 yuan from the exercise. What should we do, However, the progress of exercise is more slow than expected.
Zhang Yujun: So we mobilized the listed companies from the first day. We told the listed companies that they are your shareholders, and you should encourage them to exercise their rights. Otherwise, there will be huge losses. For example, to sponsor the warrant trading citic securities We followed them, followed all units to send notices, and sent notices online. Unfortunately, before 9 o'clock in the morning, our company still had 1.21 million shares that had not been exercised. Later, we mobilized to find these investors, otherwise we would lose about 90 million yuan. On the last day, we went all out, and finally there were 181700 shares that had not been exercised, The loss amount of investors reached 8.91 million yuan. What's the reason for this? You can think about the OCT that costs 7 yuan. He will not buy the OCT that costs more than 50 yuan. You can think about it.
Zhang Yujun: In the second year of 2006, there was a Vanke put warrant. Vanke's stock was more than 6 yuan, and the put right was more than 3 yuan. I gave our manager Zhang a task to stop investors from exercising their rights by every means. They mobilized all means to prevent investors from exercising their rights, but finally some investors insisted on exercising their rights. So the final loss reached 47900 yuan. This is an example. There is also an example of warrants, which we discussed online. I was on a business trip that week, and I told our manager, Mr. Zhang, that you should keep an eye on it. The value was allowed to fall and not to rise until the last two days. Finally, it did not return to zero. Until the warrants were sold, many people participated in the trading. One yuan was bought and stacked at home, and the next day one yuan was not worth. This is why there are many online discussions about selling the warrants.
Zhang Yujun: There is another put warrant called Zhongji, which is also very interesting. I told President Zhang that we should find a way to return to zero. At the last trading moment, just a few minutes later, an investor bought 30 million shares at one go, with a loss of 300000 yuan. Later, Li Ping studied, and I thought about why this warrant always appeared incredible phenomenon. From the perspective of the exchange, we should all go all out to mobilize brokers and listed companies. To what extent do I mobilize OCT warrants? I asked the management department of the company to call CITIC Securities and write a proxy exercise. I said that no one approved me when I said it. The securities company was obedient and sent the report to my desk. I hesitated to let investors lose money or approve. The approval was clearly in conflict with the laws and regulations, and did not criticize investors for a loss of 9 million yuan, In the end, I thought about it for a long time, but it was still a loss. Because investors could not afford it, they were determined. Finally, I thought about it for a long time and let it lose. As President Zhu said just now, qualified market participants are the key to the maturity of the capital market.
Zhang Yujun: This has caused us a series of thoughts. There are many problems in these thoughts. We reflect on the behavior of this warrant. The infrastructure construction is still relatively lagging behind. We later visited the investors of the final participants of these warrants one by one. Fortunately, we invited them to the exchange to talk about why they bought them, Some of them are also very interesting, because they are relatively long. It exposes the lag of infrastructure construction. For example, the customer management of securities companies is faced with the fact that the member unit can't find the customer. We have opened many accounts in recent years, such as sack accounts, this account, and that account. Our member unit must notify the investors. The member told us that there was no way. We couldn't find the person for a long time, It's related to our account management system. Second, we said that the listed company is your shareholder. You go to find the shareholder. He said that I can't find it, which means that the ignorance of the warrant party is an effective factor that can not effectively implement the warrant exercise. The second one has no cognitive ability about products.
Zhang Yujun: Vanke sold more than 6.6 yuan, but you didn't sell it for 3 yuan. Your understanding of the product. It also involves that our securities company's front and rear businesses are not connected. In the past, we have long been driven by the front business and ignored the back business. In addition, our business is fully configured. An investor called me. He said that President Zhang had found this person. He called three times and lost his investment. I didn't have any warrants at all. How could I have the warrants when I sold them in OCT. I called three times, picked up the phone and hung up. However, as a customer, the member has not been able to achieve the high level of service quality like the western countries. I have a monthly report on your product income, which also involves the exchange and settlement. Your shareholders have not told him the property status. In addition, some of our infrastructure can not keep up, so how can we become a mature investor, How can we rebuild our infrastructure and let investors have a rational investment philosophy is the basic problem facing our industry.
Zhang Yujun: It also involves, for example, the level and quality of personnel in securities companies. For example, he can't explain clearly what is subscription and what is put at the counter. yes conduct financial transactions The requirements and standards for information disclosure vary from product to product because financial products It's a new thing. So I am reflecting on our fund industry, because we don't know much about the situation. Is there any situation in the securities industry, or in these aspects. That is to say, the product investors we are introducing to the market do not know, or even do not know the condition of their products. He clearly has the right to know. He tells you that there is no such thing.
Zhang Yujun: In our interview with CIMC (put), he finally bought 30 million yuan. He said that I made a mistake. He said that I thought that one day I would make a lot of money by increasing at least a little. He was not clear about the product characteristics. Is there any need to remind him. This also relates to the level of protection of the whole industry. I asked our company department and the financial behavior laboratory to study and they made a good report, but I will not start to say. That is to say, we need to think about an important topic, how to make further progress in our industry on the road of specialization and rationalization to cultivate investors to be familiar with products.
Zhang Yujun: In the past, Song Liping and others in our exchanges used to supervise, and they were cautious about innovation. I often asked them, and the sooner the better. Now, in our industry, from the perspective of the capital market, how can we say that the service level and infrastructure of our industry have been improved, It is our task to improve investors' cognitive ability and disclosure level of products. So my conclusion is very clear, what needs to be done next, including securities industry, fund industry, customer management, lifelong service for investors, internal incentive and constraint mechanism, infrastructure construction, product innovation, and continuing to strengthen investor education. This year, we should say that strengthening investor education is the strongest year, However, we feel that the way, concept and means of investor education need further adjustment and innovation.
Zhang Yujun: We are now planning the content of investor education for next year. On the whole, we hope that our fund industry is the most important institutional investor, can have a systematic review in infrastructure construction, fund holder services, and rational investment of fund holders, and can truly implement the Company Law and the Securities Law to protect the rights and interests of small and medium-sized investors, Some basic concepts such as safeguarding the rights and interests of fund investors. It also takes this opportunity to improve the internal control management level, talent training level and professional quality of our industry, so that we have a clearer understanding of the development of the industry. The Exchange is willing to work with you as always to build a market development platform, promote innovation, strengthen supervision, and promote the healthy development of the fund industry. Thank you.
[Host] Thank you very much for the few stories Mr. Zhang has brought us. I think these stories are very helpful for our entire fund industry, or for everyone here to correctly understand the environment, market foundation and development stage of our industry. In the process of development, the fund industry has received direct and high attention from the society, especially a group of professional market analysis agencies and consulting agencies, who have been tracking the development of our market.
