What’s new: China’s tech-savvy STAR Market in Shanghai hosted 486 companies that raised a combined 730 billion yuan ($102 billion) through initial public offerings in its first three years.
The fundraising accounted for more than 40% of IPOs in China’s domestic A-share market during the period, said Cai Jianchun, general manager of the Shanghai Stock Exchange, Tuesday at a forum. Companies traded on the STAR Market have a combined market value of more than 6 trillion yuan.
The number of companies listed on China’s domestic stock market topped 5,000, up more than 30% from the end of 2019, Li Ming, a senior official at the China Securities Regulatory Commission, said at the same forum.
The context: Formally known as the Science and Technology Innovation Board, the STAR Market was launched in June 2019 in Shanghai as part of China’s drive to promote domestic development of technologically advanced businesses.
The board has focused on companies in sectors including new generations of information technology, advanced manufacturing, semiconductors and biotech, Cai said.
There are 80 semiconductor companies on the STAR Market, nearly 60% of such businesses traded on China’s stock market. The number of biotech companies exceeded 100 on the STAR Market, according to Cai.
In the first nine months this year, companies on the STAR Market reported combined revenue of over 782 billion yuan, up 33% from a year ago. Total net profit rose 25% to 89.1 billion yuan, outpacing companies on other domestic markets, said Cai.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bob.simison@caixin.com)
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