Financial entities get awards for innovation

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SHANGHAI will give out annual awards to financial institutions for innovation achievements as part of efforts to transform the city into a global financial hub.

The awards are granted as Shanghai aims to stimulate financial innovation, improve conditions for financial development, strengthen competitiveness of financial institutions, and promote the realization of a global financial hub in the city.

The city government teamed up with Shanghai Jiao Tong University by providing scholarships to staff working at the institutions to encourage more innovations.

For instance, Shanghai Equity Exchange was recognized for helping small and medium-sized enterprises to raise funds through private placement of shares and get bank loans.

There are 48 companies, mainly small high technology ones, listed on the equity exchange that was set up in February this year, said Zhang Yunfeng, general manager of the equity exchange.

The Shanghai Stock Exchange was recognized for launching SME private placement bonds, which helped raise 5.3 billion yuan (US$840 million) of bonds for 52 companies this year, with an average coupon rate of 9 percent, said Yuan Weirong, the bourse's associate director.

Of the 81 projects, 46 were presented the 2012 Shanghai financial innovation awards announced by the government last week.

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