Photo taken on Aug. 24, 2020 shows the Shenzhen Stock Exchange in Shenzhen, south China's Guangdong Province. (Xinhua)
BEIJING, Nov. 1 (Xinhua) -- When hailing the 14th anniversary since its opening on October 30, 2009, ChiNext board, a Nasdaq-style board for growth enterprises in China, has grown as a characteristic market to vigorously propel innovative economic development and industrial structure adjustment.
With nine strategic emerging industries as its market pillar, ChiNext board helped cultivate a batch of highly innovative high-tech enterprises in advanced manufacturing, digital economy, green and low carbon development, and other key sectors.
-- High-quality growth eyed as hallmark for ChiNext
As a board mainly serving innovative enterprises with high growth potential, ChiNext board facilitated in the past 14 years a batch of quality enterprises which focused on their main business and at the same time delved into innovation to forge ahead.
After going public on ChiNext board in June 2018, global power battery system supplier Contemporary Amperex Technology Co., Ltd. (CATL, 300750.SZ) underwent explosive growth in the following five years and saw its annual revenues and net profits both rocketing.
For Shenzhen Mindray Bio-Medical Electronics Co., Ltd. (300760.SZ), a leading medical equipment manufacturer in China, its annual revenues doubled and net profits surged in the past five years since its ChiNext listing in October 2018.
New energy vehicle (NEV) motor controller producer Shenzhen Inovance Technology Co., Ltd. (300124.SZ) got listed on ChiNext board in October 2010 and raised in the following 13 years its annual revenues from around 304 million yuan before its listing to 23.008 billion yuan in 2022.
In the past 14 years, a large batch of star companies popped up and caught market attention with their fascinating growth trajectories. So far, ChiNext board-listed companies reported average compound annual growth rates for revenues, net profits, total assets and net assets of about 19 percent, 12 percent, 22 percent and 21 percent respectively.
On basis of sound economic fundamental and supports from the market, 435 ChiNext board-listed companies saw their market capitalization (market cap) double after listing and by October 30, 186 ChiNext board-listed companies boasted market cap between 10 billion yuan to 50 billion yuan, accounting for 14 percent of the total and 22 listed companies possessed market cap of more than 50 billion yuan.
-- Development of three sectors in full swing
Under unremitting efforts in the past 14 years, ChiNext board incubated a large number of innovative and high-tech businesses in advanced manufacturing, digital economy and green and low carbon sector.
In advanced manufacturing sector, many new materials, high-end equipment manufacturing, and bio-pharmacy enterprises listed on ChiNext board managed to break bottleneck in key technologies to contribute to building a strong manufacturing economy.
By October 27, nearly 400 advanced manufacturing companies with gross market cap of approximately 3.5 trillion yuan were listed on ChiNext board, engaging mainly in the new generation of information technology, high-end equipment, biotechnology, new materials, new energy equipment, NEV energy storage and power device field.
Generally, ChiNext board-listed advanced manufacturing companies have strong profitability and high R&D input. In last three years, their compound annual growth rate of revenues was 23 percent, 10.4 percentage points higher than the comparable average for listed companies on Shenzhen Stock Exchange (SZSE). Their average R&D expenditures were 140 million yuan in 2022 and average R&D intensity was 5.3 percent.
In digital economy sector, a string of ChiNext board-listed companies in big data, cloud computing, and artificial intelligence sector adhered to innovation to explore new growth drivers and cement the fundamental for constructing the "Digital China".
By October 27, more than 300 companies in digital economy sector went public on ChiNext board and their market cap approached 3 trillion yuan.
In last three years, compound annual growth rate of revenues of these digital economy-related listed companies on ChiNext board was 5.7 percent and their compound annual growth rate of net profits was 31.1 percent. With average annual R&D of 190 million yuan, their R&D intensity averaged as high as 8.5 percent.
In green and low carbon field, a batch of ChiNext board-listed companies advanced green transition to better serve the "dual carbon" goals in China. By October 27, there were nearly 200 green and low carbon sector related listed firms on ChiNext board and these listed firms are mainly engaged in the sub-sectors such as energy saving and environmental protection, new energy and NEV.
In last three years, these ChiNext board-listed green and low carbon sector-related firms reported compound annual growth rates of revenue and net profits at 37.8 percent and 46.4 percent, much higher than the comparable averages for SZSE-listed companies.
Innovation serves always as the key to strengthening competitiveness for enterprises. By profoundly implementing the innovation-driven development strategy, ChiNext board enabled the high-quality economic development of China by supporting sci-tech innovation and key technology R&D of listed companies. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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