STAR Market: a trillion-yuan innovation powerhouse

Companies listed on the Science and Technology Innovation Board (STAR Market) raised over 1 trillion yuan ($140.69 billion) since its inception six years ago.

As of Nov 5, the 577 listed companies have raised 914.2 billion yuan through IPOs and 162.3 billion yuan through refinancing. Among these companies, 115 are in the integrated circuit sector, 111 are in biopharmaceuticals, while the new energy, new materials and high-end equipment sectors have also gained traction.

Thirty-five STAR Market-listed companies hold top global rankings in specific industries or products. Data indicates that compared to 2019, the compound growth rates of operating income and net profit attributable to shareholders of the STAR Market-listed companies over the past four years have reached 23 percent and 24 percent respectively, ranking first among all boards of A-shares. In 2022, R&D investments in the STAR Market-listed companies exceeded 100 billion yuan for the first time.

STAR Market-listed companies are expanding into international markets, with over 70 percent achieving overseas sales by the end of 2023. Total overseas revenue reached 405.50 billion yuan, comprising 30 percent of the board's overall revenue. The compound growth rate of overseas revenue of these companies has reached an average of 16 percent over the past three years, with that of 138 companies surpassing 30 percent.

Regarding talent attraction, STAR Market-listed companies have created more than 230,000 R&D job positions, with over 60 percent of founding teams comprising scientists, engineers and other research or industry experts.

Around 90 percent of companies listed on the STAR Market secured pre-IPO VC investment, with primary market investments reaching 450 billion yuan. Since its inception, 90 percent of these companies have distributed cash dividends, cumulatively exceeding 140 billion yuan in payouts.

The STAR Market has emerged as the most well-established and index-oriented board in China. As of the end of the third quarter of 2024, the number of active accounts held by professional institutional investors in STAR Market-listed companies exceeded 60,000.

The Shanghai Stock Exchange established the STAR Market and piloted the registration-based IPO system on Nov 5, 2018.