In recent discussions surrounding the enhancement of capital market functions, there is a strong emphasis on the comprehensive financial services catering to technology-driven enterprises throughout their entire lifecycleThis drive signifies a pivotal shift in recognizing the importance of innovation as a cornerstone for economic development.

Since its inception in 2009, the ChiNext board has been a proactive supporter of technological innovation in ChinaTo date, it boasts a total of 1,369 listed companies with a combined market capitalization exceeding 13 trillion yuanAn impressive 90% of these companies are classified as high-tech enterprises, with nearly 70% falling under strategic emerging industries such as new-generation information technology, renewable energy, biomedicine, and advanced manufacturingThese trends highlight a significant clustering of advantageous industries, which is a critical driver for innovation.

The results of technological innovation are abundantly evidentThe board has nurtured a range of high-quality tech companies that focus on core businesses, maintain a commitment to innovation, and demonstrate strong performanceThese companies have showcased remarkable innovative capacities and growth momentum, becoming crucial players in driving change in the industry, essentially evolving into engines of high-quality economic development for the new eraCumulatively, ChiNext companies have invested nearly a trillion yuan in research and development, with data from their 2023 annual reports indicating an overall R&D intensity exceeding 5%, which surpasses the average for A-shares by 1.8 percentage points.

Data suggests that over 50 ChiNext companies have participated in national laboratory construction, with 70% of them successfully converting their research results into tangible productsFurthermore, 894 ChiNext companies have reported collaborative R&D ventures with colleges and research institutes, with about 800 achieving commercial application of their research outputs

Advertisements

Additionally, 201 companies are engaged in joint technological R&D with international organizations and enterprises, with 192 achieving successful conversions of their research findings.

Illustrating these advancements, CATL (Contemporary Amperex Technology Co., Limited) has repeatedly achieved global leadership in technological breakthroughsIn 2021, they introduced the first-generation sodium-ion battery, which boasted world-leading energy densityBy 2023, they launched a condensed-state battery, reaching a peak energy density of 500Wh/kg, suitable for civil electric passenger aircraftAdditionally, they developed an innovative one-stop heavy truck battery swap solution—the Qiji Swap, facilitating the transformative upgrade of the heavy-duty truck industryLooking ahead to 2024, CATL plans to unveil the Shenxing supercharging battery, allowing for a 10-minute charge that provides an astonishing range of 800 kilometers (approximately 400 miles), propelling the era of ultra-fast charging for electric vehicles.

Meanwhile, the Sanhuan Group has made significant strides with its multilayer ceramic capacitors, achieving notable advancements in both high capacity and small sizeThey have successfully reduced the thickness of dielectric layers from 5 micrometers to 1, marking a substantial leap forward in the domestic high-end electronic component industryThe industry has also seen the introduction of the fully automated chemiluminescent immunoanalyzer, MAGLUMI X8, which has become the world's first machine capable of performing 600 tests per hour.

The ChiNext board has taken on the role of a testing ground for innovative policies and regulatory measures, specifically designed to cater to the characteristics of growth-oriented enterprisesThis proactive approach has allowed it to begin operations smoothly while simultaneously building a foundation for institutional development within the capital marketIt has indeed blazed a trail for effective investor suitability management, marking this as a notable first in China's domestic capital market.

Furthermore, the board pioneered a "small-scale rapid" targeted issuance mechanism, allowing for direct financing without the need for underwriting, thereby granting market entities a larger degree of independence

Advertisements

Faced with the unique traits of new economy enterprises, ChiNext has developed an industry-specific information disclosure guideline and framework, significantly enhancing the effectiveness and relevance of information disseminationThis initiative has served as a valuable reference for other capital market segments in establishing similar disclosure systems.

As part of a progressive reform aimed at advancing both new and existing market segments, ChiNext's reforms and pilot registration system have systematically advanced a series of fundamental institutional innovations involving issuance underwriting, trading, refinancing, mergers and acquisitions, and regulatory oversight of information disclosureThis has laid the groundwork for broader reforms in the registration system across the board.

ChiNext has adopted a more flexible equity incentive mechanism, introducing a second category of restricted stock options while easing constraints on the recipientsThis new structure provides discounts and amplified incentives, playing a vital role in attracting and retaining innovative talentAs of February 12, 2025, a total of 771 plans for granting these second-class restricted stock options have been approved, involving approximately 6.571 billion shares.

Over the years, the ChiNext board has demonstrated a robust framework that fosters social support and an intrinsic market drive for innovationThis demonstrative effect has created a conducive atmosphere for entrepreneurship and innovation across society, bolstering confidence in investing in early-stage, small-scale technology ventures which ultimately cultivates a new wave of productive forces.

A considerable number of leading technological figures have successfully ventured on the ChiNext platform, providing numerous entrepreneurs with a stage to realize their innovative aspirationsThe board has woven together a solid connection between capital and talent incentives, encouraging skilled professionals to immerse themselves in the ongoing tide of innovation

Advertisements

Available statistics indicate that 161 companies on the ChiNext board have actual controllers who previously held positions at universities or research institutions.

The growth of the ChiNext market has established a virtuous cycle between innovation and capitalAn analysis reveals that 695 listed companies received investments from approximately 2,569 venture capital firms prior to going public, with total investment nearing 70 billion yuanCurrent simulations of stock prices indicate an increase in investment value by nearly tenfoldAmong these, 205 companies were newly listed under the registration system, with backing from 933 venture capital firms amounting to a total of 28.2 billion yuanThe developmental phase of the ChiNext board has also effectively encouraged the growth of various venture capital firms, such as Deep Venture Capital, Dacheng Venture Capital, and Tongchuang Weiye, driving them to invest favorably in innovative enterprises aligned with national strategies and those implementing core technological breakthroughsEsteemed companies like Sungrow Power Supply Co., Ltd., Watson Biotech, and Zhongwei Co., Ltd. have greatly benefited from venture capital support during their growth trajectories, and the success of these funds in exiting has paved the way for renewed investments in subsequent early-stage ventures.

As ChiNext companies develop organically, they simultaneously support innovative enterprises through mergers or by establishing industry-focused acquisition funds that help incubate small and micro enterprisesThis creates a thriving ecosystem that directs resources toward high-efficiency, high-productivity, and high-growth sectors, establishing a collaborative environment amongst industry, academia, research, and capital in support of the national innovation-driven development strategy.

Looking ahead, ChiNext is steadfast in its mission to serve growth-oriented and innovative entrepreneurial enterprisesThere is a concerted effort to scale up inclusive, adaptable, and precise support for high-quality technology firms, to attract more advanced production factors into the tech sector, enhance the quality and investment value of listed companies, and ultimately foster a high-level interplay among technology, capital, and industry.

Advertisements

Advertisements