The Shanghai Stock Exchange (SSE) signed on April 23 a strategic cooperation agreement with Aviation Industry Corporation of China (AVIC) at the trading floor of the SSE.
Witnessed by AVIC Board Chairman Lin Zuoming and SSE Chairman of the Governors Gui Minjie, SSE Vice President Xie Wei and AVIC Vice General Manager Wu Xiandong signed the agreement on behalf of the two sides. The signing ceremony was presided over by SSE President Huang Hongyuan. Also witnessing the moment were heads of relevant departments of the SSE and AVIC as well as heads of AVIC Capital Co., Ltd. and AVIC Securities Co., Ltd.
According to the agreement, the two sides will cooperate in asset securitization in the military industry, internet-based financial innovation, IPOs of enterprises in the military industry, refinancing as well as merger, acquisition and reorganization. Financial enterprises affiliated to AVIC will join hands with the SSE to promote the issuance of such innovative products as exchange-traded monetary funds, and ETFs of stocks and bonds of the military industry. Besides, AVIC and the SSE will co-sponsor the 2nd Annual Conference of China Military Industry, which will again be undertaken by AVIC Securities. At the annual conference, all sides will organize teach-ins and seminars for hot issues including integration of production and finance in military enterprises, asset securitization in the military industry, internet-based finance as well as merger, acquisition and reorganization of assets in the military industry.
The strategic cooperation propelled by the SSE and AVIC shows the Chinese capital market’s innovation in supporting the modernization of the military industry. On the basis of building a multi-tiered capital market and increasing the direct financing proportion of enterprises in the military industry, the two sides will vigorously boost the military and civilian integration, build a mid-and-high-end industry structure and accelerate the transition of China from a manufacture giant to a manufacture power as mentioned in the “2025: Made in China” planning formulated for the country’s manufacture industry in the next 10 years.
Lin said that the strategic cooperation is a major step for the strategy of the integration of production and finance put forward by AVIC. The SSE and AVIC, with the common development ideas and the same innovative spirit, mutually supplement advantages in terms of specialty, channel and resource, and have widespread cooperative base and space in the aspects of integration of production and finance, market-oriented transformation and capitalized operation. After the signing of the agreement, AVIC and the SSE will continuously cooperate to co-write a new chapter for integration of production and finance, market-oriented transformation, capitalized operation and sustainable development.
Gui added that the SSE has been consistently committed to improving its ability of serving the real economy, innovating its service way and developing its service. The cooperation will not only contribute to exploring more financing channels for the enterprises of AVIC in the military industry, cutting their financing costs and elevating their directing financing proportion, but also help to improve the SSE’s capacity of serving the enterprises in the military industry for their development through financing in the capital market, and explore new means and ways for the capital market to serve the military industry’s growth. In the future, the SSE will, on the basis of its cooperation with AVIC, study and summarize experience to better facilitate the transformation and upgrading of the national economy.