Active trading, stable operation, enhanced innovation-driven functions
Beijing, February 10, 2015 /PRNewswire/ -- On February 9, 2015, the Beijing Property Rights Exchange (hereinafter referred to as the Beijing Exchange) released its full-year 2014 transaction data. In 2014, the Beijing Exchange completed a total of 39,111 various types of projects, an increase of 28.02% year-on-year; the transaction amount reached 1.092011 trillion yuan, up 7.1% year-on-year, with the annual trading scale once again surpassing one trillion yuan.
In 2014, the Beijing Exchange Group focused on enhancing platform functionality and expanding market influence. On the basis of solidly carrying out traditional business such as equity transfers of state-owned enterprises, it actively explored models and pathways for effectively allocating various factor resources through public markets. It continuously expanded its service scope and made great efforts to enhance the platform’s ability to aggregate projects, attract investors, and provide comprehensive services, especially financial services. This contributed significantly to the orderly flow of factor resources at the municipal, central, and even national levels, and to advancing financing for various types of enterprises.
2014,The Beijing property rights market mainly exhibited the following characteristics:
I. Actively serving the formation of a mixed-ownership economy and focusing on building financial service capabilities
Becoming an important platform for serving the formation and development of a mixed-ownership economy.As a foundational business of the property rights exchange, in 2014, the Beijing Exchange's enterprise state-owned property rights projects totaled 93.155 billion yuan in transaction value, an increase of 47.52% year-on-year. Among the 426 listed projects, non-state-owned capital such as private enterprises, individuals, and foreign-funded enterprises acquired 334 projects, accounting for 78.4%. Non-state-owned capital has been the main force in acquiring state-owned property rights for several consecutive years.
Facts have proven that after more than a decade of practical development, China's property rights market has promoted the standardized and orderly flow of state-owned property rights through its own institutional and service model innovations, creating a reliable platform for the transfer of state-owned enterprise equities. The property rights market has been, and should continue to be, a market-based platform that state-owned enterprise mixed-ownership reforms can rely on.
The investor base in the property rights market is showing a trend toward diversification, with professional investment institutions paying significantly more attention to the property rights market.With the accelerated advancement of mixed-ownership reforms in state-owned enterprises, some high-quality projects have successively entered the market for listing, attracting various types of investors including listed companies and private equity funds to participate in project acquisitions. In 2014, a total of 20 listed companies acquired 22 projects, with a transaction value of 3.904 billion yuan,an increase of 158.54% year-on-year, mainly involving the financial industry, software and information technology services, internet and related services. Among them, 12 privately controlled listed companies acquired 12 projects with an acquisition value of 2.412 billion yuan. In addition, 9 PE institutions acquired 10 projects through the Beijing Exchange, with a transaction value of 1.94 billion yuan, mainly involving the financial industry, real estate, and the production and supply of water.
With the establishment and operation of mixed-reform funds at various local levels and even the central level, the 2015 property rights market will see a new landscape where existing professional institutions, emerging mixed-reform funds, and other non-public capital jointly explore high-quality projects and promote the formation and development of a mixed-ownership economy. In 2014, the Beijing Exchange prepared in advance and took the lead in the industry in promoting the establishment of two private equity investment institutions to set up property rights investment and acquisition funds— -- the Beijing Chanrong Investment and Acquisition Fund and the Beijing Beijing Exchange Investment Fund. The funds raised by these two vehicles will primarily invest in property rights transactions, capital increases and share expansions, and financing cooperation projects on the Beijing Exchange platform.
Synergistic effects with the capital market are emerging, with active trading in certain sectors highlighting market hotspots.By sector, the top five in transaction value were the production and supply of gas, the production and supply of electricity and heat, the financial industry, the real estate industry, and business services, with transaction values of 18.903 billion yuan, 8.933 billion yuan, 6.605 billion yuan, 6.08 billion yuan, and 4.087 billion yuan, respectively. The financial industry and real estate industry have ranked among the top five transaction sectors for five consecutive years.
Notably, as the voice of industrial capital in the capital market strengthens and the level of asset securitization of state-owned enterprises increases, the property rights market and the traditional capital market are showing a synchronized effect of “what goes up for one goes up for the other.” In the second half of 2014, the financial enterprise sector led the A-share market rally, with a large number of financial enterprise equities also being listed for sale on the Beijing Exchange. Among them, multiple stakes in Taikang Life Insurance Company were listed and traded on the Beijing Exchange in 2014, with listing prices rising along with the stock market. By the end of the year, the transaction price on the property rights market had increased by 17% compared to the beginning of the year. Similarly, bank equities were also highly sought after on the property rights market. A 9.995% stake in Shijiazhuang Huirong Rural Cooperative Bank, listed on the Beijing Exchange, was eventually sold at a premium rate of 64.70% after fierce bidding.
State-owned enterprise capital increases and share expansions entering the market for trading have significantly increased, with the property rights market gradually broadening its services for mixed-ownership reforms.State-owned enterprises generally adopt three forms to advance mixed-ownership reforms: property rights transfers, capital increases and share expansions, and establishing new investments. Since 2014, with the deepening of state-owned enterprise reforms, an increasing number of capital increase and share expansion projects have entered the market for trading. The importance of the property rights market in scheme design, investor identification, fair price discovery, and procedural standardization for enterprise capital increases and share expansions has been prominently demonstrated. In the future, the Beijing Exchange will further explore in areas such as service model innovation and financial product offerings, gradually achieving benign interaction between the property rights market and the stock and bond markets, and building a market-based platform where various types of capital operate across markets to provide comprehensive services for state-owned enterprise mixed-ownership reforms.
II. Closely tracking government function transformation to provide market-based services for government departments
Successfully undertaking and completing the first batch of judicial disposal services for involved Beijing-licensed passenger vehicles.On November 14, 2014, the “Beijing Court Beijing-Licensed Passenger Vehicle Judicial Disposal Platform” was officially launched. The first batch of 11 passenger vehicles was successfully auctioned on November 25. After 14 hours of bidding, all vehicles were successfully sold at their maximum limit prices. To carry out this work, the Beijing Exchange improved trading systems, refined workflows, developed a dedicated trading system, launched an online payment system, and set up a dedicated information consultation hotline, ensuring that every step of the transaction was foolproof. The successful disposal of the first batch of involved Beijing-licensed passenger vehicles received high praise from the Municipal High People’s Court and other departments.
Establishing a sports industry resource trading platform.In October 2014, the State Council issued the “Several Opinions on Accelerating the Development of the Sports Industry and Promoting Sports Consumption” (Guo Fa [2014] No. 46). The document explicitly stated the need to “study the establishment of a sports industry resource trading platform, innovate market operation mechanisms, and promote the fair, just, and open flow of tradable resources such as event hosting rights, broadcasting rights, athlete transfer rights, and intangible asset development.” The Beijing Exchange responded actively and partnered with Huao Starry Sky Company to establish the “Sports Industry Resource Trading Platform,” which primarily conducts business such as equity transactions of sports enterprises, physical asset transactions of sports, project investment attraction for sports, project financing for sports, development and trading of sports intangible assets, and trading of sports collectibles. Currently, the platform’s website has gone live, initial trading rules and regulations have been formulated, and the first batch of 11 projects has been officially listed.
III. Promoting the construction of a unified factor market in the Beijing-Tianjin-Hebei region to serve core government initiatives
As a "market-oriented tool for government economic management" and an "important builder and operator of the capital's factor markets," the Beijing Equity Exchange has responded to the national regional development strategy of the Beijing-Tianjin-Hebei region, achieving multiple results.
Establishment of the "Beijing-Tianjin-Hebei Property Rights Market Development Alliance."On July 18, 2014, the "Beijing-Tianjin-Hebei Property Rights Market Development Alliance," jointly initiated by the Beijing Property Rights Exchange, Tianjin Property Rights Trading Center, and Hebei Property Rights Trading Center, was established in Beijing. The "Beijing-Tianjin-Hebei Property Rights Market Development Alliance Information Joint Disclosure Platform" was also launched online at the same time. To date, it has jointly published over 2,000 property rights transactions, asset transfers, and other projects across the three regions. In the future, the alliance will further deepen cooperation in areas such as investor sharing and membership sharing, and explore equity cooperation in factor market platforms.
The tourism resource trading platforms of the Beijing-Tianjin-Hebei region have taken the lead in unification.In May and August 2014, the "Beijing Tourism Resource Trading Platform" established by the Beijing Equity Exchange signed strategic cooperation agreements with the Hebei Provincial Tourism Bureau and the Tianjin Municipal Tourism Bureau, respectively. Tourism projects from Hebei Province and Tianjin Municipality have also successively been listed and traded on the tourism platform. Since its establishment in 2013, the "Beijing Tourism Resource Trading Platform" has published 242 projects with a total value of 53.3 billion yuan; 53 projects have been successfully transacted, with a transaction amount of 2 billion yuan.
Significant progress has been made in the joint carbon emission trading between Beijing and Hebei.On December 18, 2014, the Beijing Municipal Commission of Development and Reform, in conjunction with the Hebei Provincial Commission of Development and Reform and the People's Government of Chengde City, jointly issued the "Notice on Advancing Matters Related to the Cross-Regional Carbon Emission Trading Pilot" (Jing Fa Gai [2014] No. 2645), officially launching the construction of the cross-regional carbon emission trading pilot between Beijing and Hebei. The notice clarified the system architecture of the cross-regional carbon emission trading market, utilizing Beijing’s existing foundation and policy framework to drive market development, prioritizing the development of forestry carbon sequestration projects, and actively leveraging market mechanisms to attract social capital to participate in cross-regional energy conservation, emission reduction, and ecological environment construction. On December 30, 2014, Chao Luan Yuan Landscaping Engineering Co., Ltd. in Fengning Manchu Autonomous County, Hebei Province, listed and traded on the Beijing Environmental Exchange, successfully completing a transaction of 3,450 tons on the same day with a turnover exceeding 130,000 yuan, marking the first successful cross-regional carbon sink project between Beijing and Hebei. This transaction further enriched the range of cross-regional carbon emission trading products, broadened compliance channels for key emission entities, and represented an important institutional innovation and practical step by Beijing in using market mechanisms to promote cross-regional ecological environment construction and ecological compensation.
In 2015, the Beijing Municipal Government Work Report during the Two Sessions explicitly listed "actively promoting the coordinated development of Beijing-Tianjin-Hebei" as the top priority for the year’s government work. The report clearly stated the need to "gradually establish unified market-oriented transfer systems for enterprise property rights, intellectual property rights, forest rights, and mining rights across the three regions, promote the formulation of policies and measures for the flow and optimal allocation of factors such as technology and talent across regions, encourage the sharing of financial and tourism resources, and accelerate the integration of regional markets." Currently, the Beijing Equity Exchange is deeply researching the methods and approaches through which factor market platforms can play their roles, working with peer institutions in Tianjin and Hebei to solidify the "Beijing-Tianjin-Hebei Property Rights Market Development Alliance," and promote the construction of a unified factor market platform for the three regions. It aims to leverage the platform’s functions in industrial adjustment, corporate mergers and acquisitions, investment and financing, and technology trading across the three regions, providing in-depth services for the coordinated development of Beijing-Tianjin-Hebei.
Fourth, professional platform businesses show frequent highlights, with expanding market influence
In 2014, the various professional platforms of the Beijing Equity Exchange achieved a positive situation where traditional core businesses and innovative market businesses developed in tandem, leading to expanding market influence. This is mainly reflected in:China Technology Exchange (CTEX)Officially launched the National Technology Trading Full-Process Service Support Platform -- Tech-E Network, introducing four major products: "bidding services, online exhibitions, online roadshows, and customized services." It established 12 specialized channels in various regions, forming a nationwide service network, and disclosed 28,000 pieces of information.The Beijing Environmental Exchange undertook theBeijing Carbon Emission Trading Market, which operated steadily for over a year.Throughout the year, it completed quota transactions of 2.115 million tons, ranking second nationally, with a transaction amount of 105 million yuan, ranking third nationally. During the compliance period, its transaction volume, transaction amount, and market activity ranked first nationally.The establishment of theBeijing Iron Ore Trading Center enabled the independent operation of the iron ore spot trading platform.In 2014, the annual spot trading volume of iron ore on the Beijing Iron Ore Exchange (BIOTC) reached 16.7 million tons, the highest since the platform’s establishment three years ago. The benchmark price for iron ore spot trading was officially incorporated by the Shanghai Clearing House into its iron ore swap clearing business settlement prices, further enhancing the platform’s pricing influence in the iron ore spot market.Jinmajia CompanyLaunched a P2P online lending platform -- Jin Bao Hui in November 2014, signing contracts with 8 state-owned guarantee institutions as seat members, successfully issuing 10 listings, and raising 43 million yuan.
In 2015, the Beijing Equity Exchange will continue to adhere to the development philosophy of "standardization as the foundation and innovation as the driving force," seize the historical opportunities brought by a new round of reforms, focus on the two core functions of the property rights market—trading and financing—continuously consolidate traditional businesses, persist in market innovation, and strive to make greater contributions to the economic and social development of the nation and the capital.