Summary of Key Points
Seven years since its inception, the STAR Market has become the primary platform for China's hard-tech companies: a total of 611 companies have been listed, with a combined market value exceeding 13 trillion yuan, and financing (through IPOs and refinancing) amounting to over 1.2 trillion yuan. R&D investments have reached nearly 900 billion yuan, representing an R&D intensity of nearly 13%, the highest among A-share markets. The system continues to expand and become more inclusive, with new listing channels for future industries such as AI large models and quantum technology. Overall performance has improved, but there is still differentiation within the companies; some companies on the secondary market have a market value in the trillions of yuan, and investors have received a total dividend of 217 billion yuan.
I. The System is Becoming More “Open,” Making it Easier for Hard-Tech Companies to List
The STAR Market’s system has been continuously upgraded to enable more technology-driven companies, even those that are not yet profitable, to access funding for development:
- In 2025, the “1+6” policy was introduced, creating a dedicated “STAR Growth Layer” for unprofitable companies; the fifth set of listing criteria was expanded to include areas such as embodied intelligence and quantum technology.
- In June 2026, two additional policies were implemented: AI large model companies can now use the fifth set of criteria (requiring at least one deployed and scaled-down application of a large model, with companies like Zhipu and MiniMax planning to return to the market under these new rules); support was also provided for companies in quantum technology, biomanufacturing, brain-computer interfaces, and other emerging industries.
- Supporting regulations have been updated, such as the “Large Model Guidelines” that clarify the specific requirements for AI companies to list, and the revised “Interim Provisions” which include quantum, hydrogen energy, and brain-computer interfaces among the supported sectors.
In short, hard-tech companies that were previously unable to list due to lack of profitability can now find opportunities on the STAR Market as long as their technology is robust enough.
II. 1.2 Trillion Yuan in Financing and Nearly 900 Billion Yuan in R&D Over Seven Years—All Invested in Innovation
The core mission of the STAR Market is to support technological research and development, as evidenced by the following figures:
- Total Financing: 976.2 billion yuan from IPOs plus 235.8 billion yuan from refinancing, totaling over 1.2 trillion yuan, primarily used for R&D and capacity expansion.
- R&D Investments: Nearly 900 billion yuan have been invested, with an average R&D intensity (R&D as a percentage of revenue) of 13% in the past three years, significantly higher than other A-share sectors. For example, in 2025, 36 companies spent over 1 billion yuan on R&D, and 10 unprofitable biopharmaceutical companies invested more in R&D than their annual revenue—indicating that they needed to allocate additional funds for innovation.
These investments have paid off: STAR Market companies have made significant breakthroughs in areas such as AI, semiconductors, and biomedicine, with progress in domestic chips and innovative drugs largely driven by capital support.
III. Broad Industry Coverage but Regional Concentration; Overall Performance Improves, Though with Differentials
The companies on the STAR Market are spread across various industries:
- Industry Distribution: They cover six strategic emerging sectors, with the new generation of information technology (e.g., chips, AI) accounting for nearly 40%, followed by high-end equipment and biomedicine, totaling over 80% of the market. The market has also proactively invested in future industries like quantum and hydrogen energy to foster “new quality productivity.”
- Regional Concentration: Companies from Jiangsu, Shanghai, Guangdong, and Beijing account for more than 60% of the total, as these regions have more mature hard-tech ecosystems and stronger policy support.
- Performance: Overall performance is positive, with revenue growing at a compound annual rate of 17% and net profit at 11% from 2020 to 2025. In 2025, 27 companies had revenues exceeding 10 billion yuan, and 91 companies doubled their net profits. However, there are disparities: over the past three years, 44 companies saw both revenue and profit growth of over 30%, while 150 companies experienced negative growth in both indicators (mainly due to industry cycles, such as certain semiconductor firms).
IV. The Secondary Market is Becoming More Active, and Investors Are Reaping Benefits
The STAR Market is not only a place for companies to raise funds but also a platform for investors to benefit from technological advancements:
- Market Value Growth: For the first time, a company with a market value in the trillions of yuan (e.g., a leading AI company) has emerged, and the number of companies with a market value in the tens of billions has increased. Since its inception, 26% of the stocks have doubled in value, meaning investors who made smart investments have seen at least a doubling of their returns.
- Diverse Investment Tools: There are 33 STAR Market indices (covering broad bases, themes, and strategies), with over 120 ETF products totaling more than 360 billion yuan in size. For example, the “STAR 50” ETF has a market value of nearly 150 billion yuan, allowing ordinary investors to participate in the market without buying individual stocks.
- Dividend Returns: Investors have received a total dividend of 217 billion yuan over seven years, with annual dividends increasing from 7.4 billion yuan to 40.2 billion yuan, and multiple dividend payments becoming the norm. In 2026, the Shanghai Stock Exchange called for companies to improve quality and efficiency while enhancing dividend payouts, setting clearer standards for corporate profitability and dividend distribution.
V. The Future: More Hard-Tech Companies Will List, Boosting “New Quality Productivity”
As the system continues to evolve, the STAR Market will attract more companies in fields like AI, quantum technology, and brain-computer interfaces. With access to capital, these companies can accelerate the practical application of their technologies, such as using AI large models to enhance traditional industries, breaking through computational limitations with quantum computing, and helping people with disabilities through brain-computer interfaces. This will transform “new quality productivity” from a concept into reality, driving China’s economy towards a technology-driven transformation.
In summary, over the past seven years, the STAR Market has evolved from a pilot project into a vital hub for hard-tech companies. It provides funding for innovation and opportunities for investors to share in technological gains, and it will continue to play a key role in China’s technological development.