The Science and Technology Innovation Board announces its sixth anniversary: the background of "hard technology" highlights the fruitful achievements of the reform "experimental field"
2024-11-05
On November 5, 2018, the announcement that the Science and Technology Innovation Board would be established on the Shanghai Stock Exchange and a registration system would be piloted echoed along the Huangpu River. Time flies, it has been six years since the establishment of the Science and Technology Innovation Board was announced. After years of hard work, 577 "hard technology" enterprises have gathered here, and the reform "experimental field" has yielded fruitful results. It has become a key battlefield for implementing innovation driven development strategies and deepening capital market reforms. Looking back on the past six years, the Science and Technology Innovation Board (STAR Market) has operated with ingenuity, carefully crafted its institutional framework, and opened up an independent new market to improve China's multi-level capital market system and enhance its ability to serve the real economy. Over the past six years, the STAR Market has remained steadfast in its positioning, focused on allocating resources to the areas where technological innovation is most needed, and actively served the accelerated development of new quality productivity; Over the past six years, the Science and Technology Innovation Board (STAR Market) has been persevering and forging ahead on the path of innovation, continuously promoting key institutional innovation, and optimizing innovative systems such as refinancing, mergers and acquisitions, and equity incentives based on the characteristics of sci-tech enterprises. It actively plays the role of a "test field". Looking ahead to the future, the Science and Technology Innovation Board (STAR Market) has ambitious goals. With the support of the "Eight Measures for Deepening the Reform of the STAR Market to Serve Technological Innovation and the Development of New Quality Productivity" issued by the China Securities Regulatory Commission (CSRC), the STAR Market will enter a new stage of deepening reform and serving "hard technology" enterprises and the development of new quality productivity. Under the guidance of the Science and Technology Innovation Board, the level of capital market services for high-level technological self-reliance and support for the development of new quality productivity will be further enhanced. The ancient saying goes, "Craftsmanship arises with the flow of time. The new leaves of the fragrant forest urge the old leaves, and the waves in front of the flowing water give way to the waves behind. The birth of the Science and Technology Innovation Board is also an inevitable choice for the development of the times. Overall, capital market reform requires an independent new market, which serves as an important supplement to the multi-level capital market system, meeting the financing needs of enterprises of different types, scales, and development stages, and enhancing the ability to serve the real economy; On the other hand, as an experimental field for the registration system, it can provide practical experience and demonstration effects for the reform of the registration system in China's capital market, thereby promoting the reform and innovation of the entire capital market. In this context, the idea of establishing a science and technology innovation board emerged: on November 5, 2018, the first China International Import Expo opened smoothly, announcing the establishment of a science and technology innovation board on the Shanghai Stock Exchange and the pilot registration system; On the same day, the Shanghai Stock Exchange stated that it will actively study and formulate pilot plans for the Science and Technology Innovation Board and registration system, solicit opinions from the market, and implement them after completing the approval procedures. The Science and Technology Innovation Board is not only a sector, but also an independent new market that bears the responsibility of reforming and innovating China's capital market, requiring new regulatory logic, independent market positioning, and systems. Therefore, a series of "tailor-made" institutional systems have emerged: in the preparation for establishing the Science and Technology Innovation Board, emphasis is placed on the overall design and implementation of supporting systems for issuance, listing, trading, information disclosure, delisting, and other aspects; In the preparation for the pilot registration system, emphasis is placed on improving the market-oriented stock issuance and underwriting mechanism, and adjusting and optimizing the concepts, standards, mechanisms, procedures, and other aspects of the issuance and listing review. For example, in terms of the listing review mechanism, the formation of a "4+5" science and technology innovation attribute evaluation index has enhanced the objectivity, transparency, and operability of the review standards; In terms of trading system, targeted innovations have been made to the trading mechanism and investor suitability system. The price limit has been expanded to 20%, and there is no price limit for the first 5 days before listing, with appropriate investor thresholds set; In terms of issuance pricing system, a market-oriented inquiry, pricing, and allocation mechanism with professional institutional investors as the main body should be established. The price, scale, and pace of new stock issuance are mainly determined through market-oriented methods, and a new stock price structure reflecting the intrinsic value of the enterprise is formed by the full game between buyers and sellers. Under the protection of the institutional system, the Science and Technology Innovation Board quickly landed - On June 13, 2019, at the opening ceremony of the 11th Lujiazui Forum, the China Securities Regulatory Commission and the Shanghai Municipal People's Government jointly held the opening ceremony of the Shanghai Stock Exchange Science and Technology Innovation Board; On July 22, 2019, the Science and Technology Innovation Board officially opened, and the first batch of 25 companies went public. From then on, the flourishing development of the Science and Technology Innovation Board began. The Shanghai Stock Exchange stated that establishing the Science and Technology Innovation Board and piloting the registration system is a major reform measure in the capital market to enhance the ability to serve technology innovation enterprises, enhance market inclusiveness, and strengthen market functions. By implementing new systems such as issuance, trading, delisting, investor suitability, capital constraints for securities companies, and introducing supporting measures such as medium - and long-term funds, incremental pilot projects will be gradually implemented, and new funds will be synchronized with the progress of the pilot projects. This will help achieve a balance between investment and financing, primary and secondary markets, and the interests of new and old shareholders of the company, and promote the formation of good expectations in the existing market. Since the establishment and opening of the Science and Technology Innovation Board, its "original intention" has steadily grown. It firmly adheres to the positioning of "hard technology" and actively serves national strategies such as innovation driven development and high-level technological self-reliance. It provides diversified capital support that can be passed on and effectively priced throughout the entire life cycle of scientific and technological innovation, helping enterprises achieve leapfrog development. Specifically, before going public, the Science and Technology Innovation Board optimizes the various stages of private equity and venture capital fund "fundraising, investment, management, and withdrawal" to stimulate the enthusiasm of innovative capital to "invest early, invest small, and invest in technology". Data shows that 90% of companies listed on the Science and Technology Innovation Board received venture capital support before going public, with an average investment of about 930 million yuan per company. At the time of listing, the Science and Technology Innovation Board establishes a diversified and inclusive issuance and listing system to meet the financing needs of different types and development stages of science and technology innovation enterprises. A large number of "hard technology" enterprises that were unable to enter the A-share market under the original system are listed on the Science and Technology Innovation Board. According to the data, as of now, benefiting from the diversified and inclusive listing system, 54 companies that did not make a profit at the time of listing, 8 companies with special equity structures, 7 red chip companies, 20 companies that adopted the fifth set of standards, and 1 company that transferred to the board have been listed on the Science and Technology Innovation Board. Among them, 19 unprofitable companies achieved profitability and "withdrew" after going public; 20 innovative pharmaceutical companies that adopt the fifth set of standards have all achieved the listing or submission of listing applications for their core products. After going public, the Science and Technology Innovation Board also provides broad development space and abundant opportunities for resource integration for listed companies through mergers and acquisitions, supporting them to accelerate technological upgrading, industrial expansion, and market share expansion. For example, in early 2024, the domestic medical device "leader" Mindray Medical invested 6.652 billion yuan to acquire Huitai Medical, entering the cardiovascular track and becoming the first "A-control A" case on this year's Science and Technology Innovation Board. In the first consolidated reporting period after the acquisition, the growth rates of operating revenue and net profit attributable to the parent company for the first three quarters of Mindray Medical and Huitai Medical were 7.99% and 8.16%, respectively, and 25.63% and 30.97%, respectively, indicating a significant performance growth trend. It is precisely through the persistent adherence to the "original intention" that the Science and Technology Innovation Board (STAR Market) steadily advances and grows, gradually becoming a key "new pivot" to support technological innovation and accelerate the development of new quality productivity. Starting from the first batch of 25 listed companies, the total number of listed companies reached 100 on April 29, 2020, and now a total of 577 companies have listed on the Science and Technology Innovation Board, with a total market value of over 6 trillion yuan and a total fundraising of over one trillion yuan (IPO fundraising of 914.2 billion yuan, refinancing fundraising of 162.3 billion yuan), focusing on high-tech industries and strategic emerging industries, covering multiple industrial chains such as integrated circuits, biomedicine, new energy, and new materials. The Science and Technology Innovation Board is writing the innovation story of China's capital market with a series of remarkable numbers. At the same time, the continuous strengthening of key core technology research and development, as well as the emergence of research and development achievements, have become a prominent chapter in this regard. According to the data, as of now, a total of 136 (77 after de duplication) science and technology innovation board companies have led or participated in projects that have won major awards such as the National Science and Technology Award. Meanwhile, 30% of companies listed on the Science and Technology Innovation Board have innovative products or ongoing projects in the industry; Sixty percent of the core products or technologies of companies listed on the Science and Technology Innovation Board are promoting import substitution in related fields. Yu Xiang, Chief Analyst of Policy Research at CITIC Securities, stated that the Science and Technology Innovation Board has become the preferred and gathering place for "hard technology" companies to go public, providing important support for the development of new quality productivity and promoting a virtuous cycle of "technology finance industry". Over the past six years, as a "test field" for capital market reform, the Science and Technology Innovation Board (STAR Market) has been committed to exploring and innovating. In order to adapt to the characteristics of technology innovation enterprises, the board has coordinated the reform of basic systems such as issuance, listing, trading, and continuous supervision, and has taken the lead in a series of innovative systems such as refinancing, mergers and acquisitions, and equity incentives. Relevant experience has been replicated and promoted in the reform of the Growth Enterprise Market (GEM) and the Beijing Stock Exchange, laying a solid foundation for the comprehensive registration system. The Science and Technology Innovation Board has taken on the responsibility of being a 'test field' for deepening the reform of the capital market, and together with other sectors, has built a multi-level capital market system that is differentiated, functionally complementary, and interconnected, better supporting the formation of new quality productive forces and the high-quality development of the economy Yan Xiang, Chief Economist of Huafu Securities, told Securities Daily reporters. On this basis, on June 19, 2024, the China Securities Regulatory Commission issued the "Eight Measures for Science and Technology", further leveraging the role of the Science and Technology Innovation Board as a "test field" for reform, enhancing inclusiveness towards new industries, new business models, and new technologies, and better serving technological innovation and the development of new quality productivity. The Shanghai Stock Exchange stated that the China Securities Regulatory Commission's release of the "Eight Measures for Science and Technology" is not only a task book for the construction of the Science and Technology Innovation Board, but also a roadmap for its development. With the continuous implementation of the "Eight Measures for Science and Technology", the Science and Technology Innovation Board is expected to grow from a reform "experimental field" to a development "demonstration field". It is reported that the "Science and Technology Eight Measures" have put forward more than 30 support and optimization measures in eight aspects, including supporting the listing of "hard technology" enterprises on the Science and Technology Innovation Board, optimizing the issuance and underwriting system, refinancing, mergers and acquisitions, index products, and market ecology. Since the release of the "Eight Measures for Science and Technology", all parties in the market have answered the same questions and continuously promoted the acceleration of relevant measures from paper to practice. For example, in terms of mergers and acquisitions, after the release of the "Eight Measures for Science and Technology", the Shanghai Stock Exchange, together with 10 regional securities regulatory bureaus, held 10 special symposiums on the "Eight Measures for Science and Technology" to discuss better support for mergers and acquisitions of science and technology innovation enterprises. On October 10th, another securities symposium was held to present the latest policy spirit of mergers and acquisitions, and to listen to opinions and suggestions on further activating the merger and acquisition market and bridging the "last mile" of policy implementation. In addition, the Shanghai Stock Exchange has successively released the "Science and Technology Innovation Board Innovation System One Book", "Science and Technology Innovation Board Regulatory Express - Mergers and Acquisitions Special Issue", "Rules, Policies and Cases of Mergers and Acquisitions of Listed Companies One Book", "Compilation of Typical Cases of Mergers and Acquisitions", etc., to help listed companies and related market entities understand the rules, grasp the latest regulatory guidance, and facilitate the planning and implementation of mergers and acquisitions by listed companies. Guided by a series of supportive measures, companies listed on the Science and Technology Innovation Board actively promote the process of mergers and acquisitions, accelerating technological breakthroughs, industrial integration, and international layout through high-quality industrial mergers and acquisitions. Data shows that since the release of the "Science and Technology Eight Measures", more than 40 new equity acquisition transactions have been disclosed on the Science and Technology Innovation Board, with more than twice the number of transactions compared to the same period last year and a total amount exceeding 11 billion yuan. Among them, there are also many typical cases. For example, there are 10 transactions involving the acquisition of high-quality unprofitable "hard technology" enterprises, seeking synergies in technology, products, markets, and other aspects; In terms of optimizing payment tools, Sireipu has established a "fixed
Edit：Yao jue Responsible editor：Xie Tunan
Source：Securities Daily
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