Shanghai’s Star Market, a hub for science and technology firms, celebrated its sixth anniversary with an impressive USD153.4 billion raised since its inception. The market has facilitated the public listing of nearly 590 companies, boasting a total market capitalization exceeding USD976 billion. These firms, spanning strategic emerging sectors like next-generation IT, biomedicine, and high-end equipment manufacturing, have prioritized substantial investments in research and development.
Over the past five years, these companies have collectively channeled more than CNY700 billion into R&D activities, with a significant portion allocated solely in the previous year. Notably, these firms have demonstrated a strong commitment to innovation by dedicating a median of 12.6 percent of their revenues to R&D, far surpassing the median R&D allocation on other stock exchanges.
To further support tech firms, the Star Market has introduced flexible listing requirements, enabling the listing of companies with unique equity structures and those yet to turn a profit. The market’s commitment to nurturing high-growth enterprises is evident through continuous regulatory enhancements in stock issuance, trading, and refinancing. These efforts aim to create an environment conducive to fostering innovation and sustainable growth.
In a recent development, a new “growth tier” was introduced on the Star Market to accommodate unprofitable tech firms, expanding the eligible sectors to include artificial intelligence, commercial aerospace, and more. This move signifies China’s evolving capital markets, demonstrating a more inclusive approach to support technological advancements. Industry experts have lauded these institutional improvements, emphasizing the potential for attracting high-quality tech firms to list domestically or pursue dual listings.
Commenting on the market’s evolution, Huo Da, chairman of China Merchants Securities, highlighted the significance of the growth tier in promoting science and technology innovation. Liu Jian, chairman of Shenwan Hongyuan Group, emphasized that ongoing enhancements to the Star Market will incentivize top-tier tech companies to list, offering Chinese investors direct access to cutting-edge innovations.
The Star Market’s success in raising significant capital for tech enterprises underscores its pivotal role in driving innovation and fostering a dynamic ecosystem for emerging industries. As China’s premier venue for tech listings, the market continues to set new benchmarks, exemplifying the country’s commitment to advancing technological prowess and supporting entrepreneurial endeavors.
📰 Related Articles
- Xerox to Acquire Lexmark for $1.53 Billion, Strengthening Market Position
- Xerox Acquires Lexmark for $1.5 Billion, Expands Market Reach
- Travel Accessories Market Set to Reach US$ 92.91 Billion by 2032: Report Insights
- Tech Stocks Lead Market Rally Amid Positive Investor Sentiment
- Tech Stocks Lead Market Amid Tariff Legal Battles