Since its inception seven years ago, the tech-focused board on the Shanghai Stock Exchange has seen 611 companies go public, collectively raising over 1.2 trillion yuan (approximately $177.1 billion USD). As of yesterday, the total market value of these listed firms exceeds 13 trillion yuan (around $1.91 trillion USD).
Over this period, companies listed on the tech board have dedicated nearly 900 billion yuan (about $132.9 billion USD) to research and development. In the last three years, their median R&D investment intensity has reached nearly 13%, ranking first among the four main boards across mainland China.
By comparison, the median R&D investment intensity for companies on the main board of the Shanghai Stock Exchange is 3.4%, while the Shenzhen Stock Exchange’s main board shows 3.7%, and the ChiNext tech board registers 5.4%.
The adoption of a registration-based IPO system on this tech-focused exchange has made it easier for high-tech companies to access the public markets, according to several executives of listed firms. The flexible and supportive policies have bolstered capital operations and innovative growth, enabling companies to concentrate on expanding core businesses, upgrading technologies, and broadening their market reach.
For instance, the chairman of Jansen Superconducting Technologies explained that their research and development goals remained unchanged since they went public, but the influx of capital from the IPO has sped up their R&D efforts. Post-IPO, they have gained a competitive edge in attracting specialized talent, and rising orders have helped them increase production capacity.
Suzhou HYC Technology, the first company listed on this tech board, has used proceeds from their IPO and convertible bonds to advance display semiconductor technology, significantly boosting their technological capabilities and easing production bottlenecks, according to the company’s deputy general manager and CFO. Employee stock ownership plans and equity incentives have also played key roles in attracting top talent.
Over the past seven years, the star board has mainly concentrated on fostering industrial ecosystems in sectors like integrated circuits, biomedicine, artificial intelligence, and high-end manufacturing. These sectors, particularly IC, biomedicine, and high-end equipment manufacturing, comprise over 80% of listed companies.
The industrial clusters within information technology, biomedicine, and high-end equipment manufacturing have established notable influence globally, especially in mature markets where they set supply and pricing standards. Some leading firms in niche segments compete closely with or even slightly outperform their international counterparts.
However, certain upstream materials and critical components still lag behind, with Chinese firms positioned in the second or third tier but actively working to catch up, an industry insider remarked.
In terms of regulatory reforms, recent measures introduced on June 17 aim to broaden the scope of listing criteria to include artificial intelligence. This change encourages the listing of high-quality AI model developers and supports the entrance of more advanced tech firms in areas such as quantum computing, biomanufacturing, and embodied intelligence.
Some companies, including Zhipu AI (also known as Z.ai internationally) and MiniMax Group, are progressing toward a return to the Chinese mainland for initial public offerings.
This expansion effectively redefines large language models from mere technical tools to vital components of new infrastructure, with their own independent ecosystems. It also creates new financing opportunities for AI developers with core technologies who have yet to turn a profit, according to industry analysts.