Core Viewpoint - The Private Economy Promotion Law will officially take effect on May 20, marking a significant step in establishing the legal status of the private economy and enhancing fair competition and rights protection for private enterprises [1] Group 1: Role of Capital Markets - The capital market has become a crucial platform for the development of the private economy, with approximately 80% of companies on the Sci-Tech Innovation Board, Growth Enterprise Market, and Beijing Stock Exchange being private enterprises, and about 90% of companies on the New Third Board being private [1] - Securities firms are accelerating the creation of a comprehensive service system covering the entire lifecycle of private enterprises, which will further optimize the financing structure and quality for these companies [1] Group 2: Multi-faceted Support from Securities Firms - Securities firms can enhance support for private enterprises by building a diversified financing system to improve financing accessibility and affordability, addressing long-standing issues of financing difficulties and high costs [2] - In 2024, the industry is expected to underwrite or manage 430 private enterprise bonds or asset-backed securities (ABS), representing a 27.6% year-on-year increase, with a total financing amount of 461.92 billion, up 33.1% [2] - Securities firms can assist private enterprises in activating assets through methods such as targeted placements and equity pledges, while also reducing information asymmetry between private enterprises and investors [2] Group 3: Comprehensive Financial Support - Securities firms can provide personalized and continuous financial services throughout the lifecycle of private enterprises, including early-stage equity investment and support for mergers and acquisitions to enhance core competitiveness [3] - There is a focus on assisting distressed but high-quality private enterprises through bankruptcy restructuring and asset revitalization, providing financial support and introducing industrial investors [3] Group 4: Empowering Technological Innovation - Private enterprises are becoming a vital force in cultivating new productive forces, and securities firms are focusing on industries related to new productive forces to innovate investment banking products and services [4] - The recent announcement by the People's Bank of China and the China Securities Regulatory Commission to support the issuance of technology innovation bonds includes securities firms as eligible issuers, which is significant for enriching financing channels for growing technology companies [4] - The implementation of the Private Economy Promotion Law will enhance the role of securities firms in supporting national strategies and the high-quality development of the private economy, particularly in financial innovation and risk management [4]