The Shanghai Stock Exchange STAR Market, a science and technology focused equities market in China, marked the fourth anniversary of its opening on Tuesday.

Over the past four years, the STAR market has made breakthroughs with over 500 listed companies achieving over a trillion yuan ($139.8 billion) in total revenue, over 100 billion yuan in total net profit, and over 100 billion yuan in total annual R&D expenditure. Its annual growth rate is twice of ChiNext, another source of private capital financing for high-tech firms in China.

Since its establishment in 2019, the STAR market has been favored by high-tech industries and emerging strategic industries. As of Monday, 534 companies have been listed on the STAR market, including 218 new-generation information technology companies, 108 biopharmaceutical companies, 88 high-end equipment manufacturing companies, as reported by Securities Daily, with a total market capitalization of 6.63 trillion yuan ($927.4 billion).

At the same time, the listed companies maintained a high level of R&D investment. In 2022, they invested a total of 128.5 billion yuan in R&D, an increase of 28 percent year on year. The average number of invention patents reached 152 for each company.

The STAR market maintained rapid growth momentum in its four years of operation. In 2022, revenue of the listed companies totaled 1.2 trillion yuan, up 29 percent year on year. More than 80 percent of the companies were profitable, and nearly 70 percent of the companies achieved operating revenue growth.

From 2019 to 2022, the compound growth rate of operating revenue and net profit of STAR Market's listed companies reached 29 percent and 56 percent, respectively. Over 30 percent of the companies achieved positive net profit growth for three consecutive years, injecting strong momentum into China's economic development.

Looking ahead, the board is set to lead the transformation toward an innovation-driven economy and provide the impetus for China's science and technology innovation.

(Cover image via CFP)