AI in Focus: SSE's Future Industry Salon Explores Commercialization Challenges
On November 14, 2024, the Shanghai Stock Exchange (SSE) hosted its inaugural Future Industry Salon under the theme "Artificial Intelligence: The Future is Happening." The event brought together over 40 experts and stakeholders, including executives from SSE STAR Market-listed companies, venture capital firms, and academics, to discuss AI's commercialization potential and challenges.
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AI's Transformative Potential
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AI has become a cornerstone of the next industrial revolution, driving innovation across industries. The SSE STAR Market has supported 115 integrated circuit firms and 49 software companies, collectively valued at RMB 3.19 trillion, accounting for nearly half of the STAR Market's total capitalization. These companies span the AI value chain, from computing power to foundational models and applications.
Despite its promise, experts noted that AI's large-scale models face significant hurdles in cost, scalability, and reliability. Computing power, described as AI's "infrastructure," plays a critical role in enabling these advancements, with domestic GPU producers poised to enhance technological sovereignty.
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Capital Markets: A Pillar of AI Growth
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AI’s high R&D costs and delayed profitability pose financial challenges. Analysts estimate that startups in AI chip manufacturing require RMB 50–100 billion in funding to reach profitability. Participants highlighted the importance of "patient capital," particularly from industrial funds and state-owned investors, in supporting early-stage development and fostering market confidence.
“Sustained R&D is key, and we look to capital markets for support as we commercialize AI innovations,” said a participating enterprise leader.
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SSE's Support for Emerging Industries
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The SSE reaffirmed its commitment to nurturing future industries through policies tailored to new technologies and business models. Initiatives like the "Eight Measures for STAR Market Development" and "Six Measures for M&A Reform" aim to enhance inclusivity and adaptability, fostering a stronger connection between innovation and finance.
The salon signals SSE's proactive role in driving collaboration between industry and capital markets, paving the way for AI to transition from potential to reality.
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Looking Forward: A Shared Vision for Growth
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The next phase of China's financial opening seeks to align with global practices while supporting domestic economic goals. According to Tan Yueheng, Chairman of BOCOM International, the inclusion of derivative products and expanded green finance initiatives will further deepen integration between the mainland and global markets.
Hong Kong's Acting Chief Executive, Eric Chan, reiterated the region's role in aligning its financial expertise with China's broader development agenda. By promoting innovation within the Stock Connect mechanism and strengthening regulatory cooperation, Hong Kong aims to solidify its position as a linchpin of China's international financial strategy.
As China celebrates a decade of successful financial connectivity, the journey ahead promises continued growth, innovation, and collaboration. With a steadfast commitment to openness and reform, China's capital markets stand poised to offer global investors unparalleled opportunities while driving the nation's economic transformation.
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