STAR Market: Fueling China's Hard Tech Growth with $140 Billion in Capital
Six years since its launch, China's STAR Market has become the core platform for “hard technology” companies, raising over 1 trillion yuan ($140.7 billion) and hosting 577 listings in sectors like integrated circuits, biopharmaceuticals, and advanced materials. STAR's mission: accelerate tech innovation through tailored policies and significant capital support.
A Unique Ecosystem for Innovation
STAR Market's flexible listing criteria attract diverse high-tech firms, including 54 pre-profit companies and others with specialized structures. The Shanghai Stock Exchange reports that ongoing innovations—such as adding STAR Market ETFs to broader trading platforms and refining post-market mechanisms—aim to attract even more capital to sectors key to China's tech goals.
R&D at the Core
STAR Market-listed companies lead in R&D, with investment reaching 1.04 trillion yuan in the first three quarters of 2024. With over 110,000 patents and recognition for specialization (351 “Little Giant” firms and 60 “Manufacturing Champions”), STAR Market companies have established themselves as frontrunners in China's tech landscape.
Accelerated Growth in Strategic Sectors
STAR's focus includes high-growth areas like integrated circuits and biopharma. Integrated circuit firms alone posted a 205% profit increase, while biopharma companies saw revenues soar 53% in the first three quarters. This underscores STAR’s role as an economic engine driving China's emerging tech.
Impact of the “Eight Measures”
Introduced in June, STAR's “Eight Measures” aim to enhance market liquidity and attract diverse investors. STAR indices now cover 25 categories, with investment reaching nearly 2.9 trillion yuan, up over 70% this year.
Global Reach and Future Potential
With 70% of STAR-listed companies reporting overseas sales, STAR Market is not only China's high-tech IPO hub but also a global growth platform. It’s positioned to keep driving China's tech innovation, providing both growth opportunities and rigorous standards for the country’s tech-focused economy.
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