On 24 August, the registration-based IPO reform on the Shenzhen SME board (ChiNext) marked its sixth anniversary. Built on China’s earliest capital-market segment created to back technology innovation, Shenzhen firms are accelerating into industry leadership. According to data from iFinD compiled by the newspaper, as of 23 August Shenzhen had 166 ChiNext-listed companies, the highest count of any city in the country.
On 24 August 2020, the first batch of 18 companies under the registration system listed, and the board became a “new high ground” supporting innovation and entrepreneurship, surfacing a large group of quality firms with core technology and innovation capability. The total number of listed companies has now reached 1,403. By ChiNext listing count, Shenzhen ranks first nationally, ahead of Beijing with 130, Shanghai with 81 and Guangzhou with 47. Among the leaders, six Shenzhen companies exceed a total market value of HK$100 billion: Mindray, DapuStor, Longsys, Inovance, Han’s CNC and Sharetronic.
Since the start of this year, Shenzhen innovation firms have accelerated their ChiNext listings, riding the artificial-intelligence wave while using capital-market support to enter a development “expressway”. By industry, Shenzhen’s ChiNext listings show a high “new economy” content. Electronics, computing, machinery and electronic equipment are the most concentrated sectors, with 48, 24, 19 and 17 companies respectively.
Shenzhen is moving faster to build a globally influential industrial-technology innovation centre. Experts say that by using the capital market’s financing function well and seizing the opportunity of deepening the ChiNext reform, Shenzhen will surface more quality innovators in emerging and future industries, strengthen its new-quality productive forces, and support the economy’s shift to high-quality development.
Editor’s note: This is an adapted translation of the original Shenzhen News report. It has been trimmed and restructured for readability for an international business audience.