CFIC Introduction
Over the past five years, the Science and Technology Innovation Board has become a source of cultivation for the high-quality development of "hard technology" enterprises. According to the analysis of industry insiders, with the support of the "Eight Articles of the Science and Technology Innovation Board", the reform of the Science and Technology Innovation Board has started again, serving high-level scientific and technological self-reliance and self-improvement and the development of new quality productivity has entered a new stage.
Original title: [Xinhua Interpretation] The fifth anniversary of the Science and Technology Innovation Board: "Hard Technology" gathers innovation and sets sail again On July 22, the Science and Technology Innovation Board ushered in the fifth anniversary of its opening. There were 573 listed companies, with R&D investment reaching 156.1 billion yuan, a compound growth rate of 24% attributable to the parent company, and an index of 20 on the Science and Technology Innovation Board...... Over the past five years, the Science and Technology Innovation Board has become a source of cultivation for the high-quality development of "hard technology" enterprises. According to the analysis of industry insiders, with the support of the "Eight Articles of the Science and Technology Innovation Board", the reform of the Science and Technology Innovation Board has started again, serving high-level scientific and technological self-reliance and self-improvement and the development of new quality productivity has entered a new stage. Over the past five years, the STAR Market has supported the listing of 573 high-tech and strategic emerging industries such as new generation information technology, biomedicine, high-end equipment, new energy, new materials, energy conservation and environmental protection, with a total market value of about 5 trillion yuan. The IPO raised 910.8 billion yuan and the refinancing raised 158.1 billion yuan, totaling more than one trillion yuan.
The figure shows that among the 573 companies, there are 341 national-level specialized and special new "little giant" enterprises, 50 manufacturing individual champion enterprises, and 40 manufacturing single champion product enterprises (a total of 373 after deduplication), accounting for 65%. In addition, the STAR Market has supported the listing of 54 unprofitable enterprises, 8 enterprises with special equity structures, 7 red-chip enterprises, and 20 enterprises with the fifth set of standards. Up to now, 19 unprofitable companies have achieved profitability and "U" after listing. Peng Wenyu, chief analyst of Shenwan Hongyuan Research IPO Strategy, said that the Science and Technology Innovation Board not only brings together a large number of leading enterprises with outstanding core technologies and strong research and innovation capabilities, but also attracts many start-up and growth stage enterprises with high technology content and great market potential. Among them, the total proportion of science and technology enterprises with the core of the new generation of information technology, biomedicine, and high-end equipment manufacturing is about 8% of the total number of listed companies on the Science and Technology Innovation Board, and the agglomeration effect of integrated circuits, biomedicine and other industries continues to expand.
Yu Xiang, chief analyst of CITIC Securities Policy Research, pointed out that the "Eight Articles of the Science and Technology Innovation Board" was officially implemented in June this year, the essence of which is to give full play to the function of the capital market to serve high-level science and technology, and to be self-reliant and self-reliant. Among them, the document proposes to support mergers and acquisitions and restructuring, increase the inclusiveness of non-profit enterprises, and encourage the enrichment of ETF categories on the Science and Technology Innovation Board, and optimize the exit mechanism of venture capital. It is expected that the Science and Technology Innovation Board will become the first choice and gathering place for hard technology enterprises to go public, and will provide important support for the development of new quality productivity in the future, helping to create a virtuous circle of "science and technology-finance-industry". 156.1 billion yuan - R&D investment has reached a new highOver the past five years, companies on the Science and Technology Innovation Board have actively played the main role in scientific and technological innovation activities, adhered to innovation-driven development, maintained a high level of R&D intensity, and accelerated the convergence of innovative elements. In 2023, the amount of R&D investment will reach 156.1 billion yuan, a year-on-year increase of 14.3%, and the median proportion of R&D investment in operating income will be 12.2%.
The figure shows the R&D situation of companies listed on the Science and Technology Innovation Board"Under the guidance of the continuous improvement of the 'science content' indicator system, the companies listed on the Science and Technology Innovation Board have stronger R&D investment and more complete R&D teams in all sectors of the A-share market. Peng Wenyu said. Relevant statistics show that the talent chain of the Science and Technology Innovation Board has accelerated the docking, bringing together a group of high-level scientific research talents, with more than 230,000 R&D personnel, and the proportion of R&D personnel in the total number of employees exceeds 30% on average. Thanks to the continuous and stable high R&D investment, the company has continuously made new progress and breakthroughs in scientific and technological innovation. As of mid-July this year, 136 projects led or participated in by 136 companies on the Science and Technology Innovation Board have won major awards such as the National Science and Technology Award; More than 100,000 invention patents have been formed, and the average number of invention patents owned by each company has reached 185; Sancheng's products or projects under research are the first in the industry; Sixty percent of the core products or technologies of the companies on the Science and Technology Innovation Board are promoting import substitution in related fields. Xu Chi, chief strategy analyst of Zhongtai Securities, believes that the China Securities Regulatory Commission issued the "Eight Articles of the Science and Technology Innovation Board", which further emphasizes the positioning of the "hard technology" of the Science and Technology Innovation Board. In the future, the Science and Technology Innovation Board may introduce more refinancing support policies, optimize the financing system of listed companies on the Science and Technology Innovation Board, and help the high-quality development of start-up "hard technology" enterprises. 24% - the overall growth of listed companies is good, and since the opening of the board, the overall growth momentum of the science and technology innovation board companies has been good. Based on 2019, the compound growth rate of operating income and net profit attributable to the parent company reached 23% and 24% respectively. Among them, 92 companies have a compound growth rate of more than 30% in operating income and net profit, 187 companies have achieved growth in operating income for four consecutive years, and 75 companies have achieved positive growth in net profit for four consecutive years.
The picture shows the performance of companies listed on the Science and Technology Innovation Board in recent years, and the operating quality of the companies on the Science and Technology Innovation Board has continued to improve, reflecting strong market competitiveness. In 2023, the average gross profit margin of companies on the STAR Market will be 42%, significantly ahead of all sectors of A-shares. Tian Lihui, dean of the Institute of Financial Development of Nankai University, said that in the past five years, the market ecology of the science and technology innovation board has changed significantly, and these companies have invested significantly in R&D and growth after being listed on the science and technology innovation board, which has promoted innovation and development. On July 19, the Shanghai Stock Exchange and China Securities Index Co., Ltd. announced that they will officially release the SSE Science and Technology Innovation Board Medical Index and the SSE Science and Technology Innovation Board Artificial Intelligence Index on July 25, 2024, which means that the number of indices on the Science and Technology Innovation Board will reach 20. Relevant statistics show that at present, the scale of domestic and foreign products in the Science and Technology Innovation Board Index is nearly 153 billion yuan. As of the end of June 2024, the product scale of the Shanghai Science and Technology Innovation 50 ETF is 127.7 billion yuan, which is nearly 5 times the scale of the product raised; The product scale of the Shanghai Science and Technology Innovation 100 ETF was 17.9 billion yuan, an increase of 30% over the scale of the fundraising.
The picture shows the number and scale of domestic and foreign tracking products of the Science and Technology Innovation Board 50 ETF Index (100 million yuan) Tian Lihui said that the market-oriented reform of the Science and Technology Innovation Board has attracted more professional institutional investors, improved the liquidity and activity of the market, promoted the dynamic balance of investment and financing, and enhanced the depth and breadth of the A-share market. Industry insiders generally believe that the "institutional market" of the Science and Technology Innovation Board has begun to take shape, and medium and long-term funds have built the "cornerstone" of plate investment. For example, ninety percent of the listed companies on the Science and Technology Innovation Board received investment from venture capital institutions before listing, with an average investment of about 930 million yuan per company. As of the end of 2023, the number of active accounts of professional institutional investors exceeded 70,000, a year-on-year increase of 30%, of which the number of active accounts of enterprise annuities and public funds grew rapidly, with a year-on-year growth rate of more than 200% and 10% respectively; Institutional investors account for nearly 70% of their positions, of which long-term funds such as social security, insurance, and annuities account for nearly 5%. 42.5 billion yuan - the amount of dividends has reached new highs, practicing the development concept of "investor-oriented", the company has been deeply engaged in the main business of science and technology innovation for a long time, continued to improve the quality of the company, and actively rewarded investors. According to data from the Shanghai Stock Exchange, since the opening of the board, the dividend amount of companies on the Science and Technology Innovation Board has repeatedly reached new highs, and about seventy percent of the companies have launched cash dividend plans for 2023, with a total annual cumulative dividend of 42.5 billion yuan, and more than 300 companies have a cash dividend ratio of more than 30%. Since 2024, the upper limit of the repurchase amount of companies on the Science and Technology Innovation Board has exceeded 20 billion yuan, and the upper limit of the amount has reached a record high.
The figure shows the annual cumulative dividends of listed companies on the Science and Technology Innovation Board
In addition, the STAR Market has gradually deepened the value concept of "investor-oriented". According to the data of the Shanghai Stock Exchange, a total of 412 companies actively responded to the initiative of improving quality and efficiency and focusing on returns, and disclosed the "2024 Action Plan for Improving Quality and Efficiency and Emphasizing Returns", accounting for 72% of the total number of companies, aiming to consolidate corporate governance, improve the level of profit returns, and share growth value with investors with the main theme of "focusing on the main business" and "scientific and technological innovation". Tian Xuan, Dean of the National Institute of Financial Research of Tsinghua University, said that as a "test field" for capital market reform, the Science and Technology Innovation Board has continued to broaden corporate financing methods, encouraged high-quality industrial mergers and acquisitions of companies on the Science and Technology Innovation Board, created a unique inquiry and transfer mechanism, and introduced a market maker system, and a series of reform measures have achieved remarkable results. In terms of refinancing, as of the end of June 2024, a total of 221 companies on the STAR Market have launched refinancing plans, with a total of about 313.2 billion yuan to be raised. The refinancing registration of 133 companies came into effect, of which 19 companies efficiently solved their capital needs through the "small and fast" mechanism. In terms of mergers and acquisitions, as of the end of June 2024, a total of 15 companies have issued plans to purchase assets by issuing shares, of which 1 company has issued a plan to purchase assets by issuing convertible bonds. Seven companies including Huaxing Yuanchuang have completed mergers and acquisitions to achieve complementary technological advantages, and their core competitiveness and anti-risk ability have been effectively improved. In terms of inquiry transfer, as of the end of June 2024, a total of 124 batches of shareholders of 78 companies on the STAR Market have completed the inquiry transfer, with a total turnover of 54 billion yuan, with private equity funds, public funds, insurance companies, QFIIs and other professional investment institutions as the main transferees of equity. In terms of market makers, as of the end of June 2024, 17 market makers have completed the filing of a total of 626 stocks, covering 232 stocks on the STAR Market, with a sector coverage rate of 40%. In terms of equity incentives, as of the end of June 2024, a total of 397 companies on the STAR Market have launched 626 equity incentive plans, with a sector coverage rate of 69%, covering nearly 100,000 directors, senior executives, core technical personnel, and core business personnel. "I am most looking forward to the measures of the Science and Technology Innovation Board in improving the accurate identification mechanism of technology-based enterprises, carrying out the pilot of deepening the issuance and underwriting system, optimizing the pricing mechanism of new share issuance, and promoting valuation reform." Tian Xuan said that the above measures will guide the market to adhere to long-termism, deeply support "early, small, hard technology" enterprises, truly strengthen patient capital, and better serve the development of new quality productivity.
Source of this article: Xinhua Finance
Authors: Liu Yulong, Yan Peng, Ding Jing
Enhance professional capabilities and aim at new opportunities, securities firms are deeply engaged in the "test field" of the Science and Technology Innovation Board
The Science and Technology Innovation Board celebrates its fifth anniversary. As a "test field" for the reform of the A-share registration system, the Science and Technology Innovation Board carries the mission of serving the national innovation-driven development strategy and helping high-level science and technology to become self-reliant and self-reliant. In the current context of vigorously developing new quality productivity, the Science and Technology Innovation Board has strengthened the support of the capital market for "hard technology" through a series of institutional innovations, and continued to build the "main front" for cultivating new quality productivity. Brokerages said that brokers, as important participants in the capital market, should grasp the pulse of the times, actively give full play to their professional advantages, and further enhance the ability to serve new quality productivity. At the same time, with the introduction of the "Eight Articles of the Science and Technology Innovation Board", the M&A and restructuring business is expected to become a new focus of the investment banking business of securities companies. Focusing on "hard technology" to build the "main front" for cultivating new quality productivityOver the past five years, the Science and Technology Innovation Board has adhered to the positioning of "hard technology", continued to grow and develop from scratch, and the role of the "experimental field" of institutional reform and the effectiveness of serving scientific and technological innovation have continued to appear. According to the data, up to now, a total of 573 companies have landed on the Science and Technology Innovation Board, with a total initial offering of more than 910 billion yuan. Huatai United Securities said that since the opening of the Science and Technology Innovation Board, as a sponsor, the company has helped a total of 48 companies to land on the Science and Technology Innovation Board, witnessing a large number of enterprises with "hard technology" strength shining on the Science and Technology Innovation Board. At present, a series of profound changes in the capital market are paving the way for high-quality development, and securities and investment banks should further return to their origins, be diligent and responsible, put functionality in the first place, and give full play to the responsibilities of the "gatekeeper" of the capital market. As a pioneer in China's capital market reform, the Science and Technology Innovation Board has provided fertile soil for the cultivation and growth of new quality productivity through a series of innovative system designs, such as registration-based reform, differentiated listing standards, and optimized trading mechanisms, according to the Quality Control Department of Zheshang Securities Investment Bank. "Securities and investment banks must grasp the pulse of the times, deeply integrate new quality productivity into business processes and service models, and lead the innovation of industry service standards." On June 19, the China Securities Regulatory Commission (CSRC) issued the "Eight Measures on Deepening the Reform of the Science and Technology Innovation Board to Serve Scientific and Technological Innovation and the Development of New Quality Productive Forces" (hereinafter referred to as the "Eight Measures of the Science and Technology Innovation Board") to further deepen the reform, enhance the inclusiveness of new industries, new forms of business and new technologies, and better serve the development of scientific and technological innovation and new quality productivity. Wu Kaida, chief analyst of strategy and dean of the Policy Research Institute of Tianfeng Securities Research Institute, said that in response to the market reflection of the relatively concentrated new share issuance at high prices and over-offerings, activating the merger and reorganization market, and strengthening the supervision of listed companies, the "Eight Articles of the Science and Technology Innovation Board" have made corresponding arrangements. In addition, practical issues such as how to determine technology-based enterprises, the listing of unprofitable technology companies, the placement of new stock market value on the Science and Technology Innovation Board, and the payment tools for mergers and acquisitions have all been clearly responded to in the document. Specifically, Hu Xiang, chief analyst of Soochow Securities Non-bank, said that the "Eight Articles of the Science and Technology Innovation Board" put forward clear support for the listing and acquisition of high-quality unprofitable technology-based enterprises, enhanced the inclusiveness of new quality productivity companies, and is expected to give full play to the unique advantages of the Science and Technology Innovation Board in cultivating hard technology. With the continuous implementation of the follow-up supporting measures of the "Eight Measures of the Science and Technology Innovation Board", the Science and Technology Innovation Board will further provide broader financing channels and more efficient capital operation platforms for new high-quality productivity enterprises. Xu Kang, chief analyst of the financial industry of Huachuang Securities, said that on the whole, the introduction of the "Eight Articles of the Science and Technology Innovation Board" will further improve the service coverage and accuracy of the multi-level market, focus resources on enterprises with real innovation potential by optimizing resource allocation, stimulate the innovation vitality of enterprises, and promote industrial integration and market expansion, help enhance scientific and technological innovation and industrial competitiveness, and promote high-quality economic development. Tapping M&A and restructuring opportunities to play the role of a "matchmaker" in transactions It is worth noting that the "Eight Articles of the Science and Technology Innovation Board" proposes to support mergers and acquisitions and restructuring, support listed companies on the Science and Technology Innovation Board to carry out mergers and acquisitions and integration of the upstream and downstream of the industrial chain, and enhance industrial synergies. At the same time, securities companies are encouraged to actively carry out mergers and acquisitions and restructuring business to enhance their professional service capabilities. From the perspective of the development trend of the M&A and restructuring market, "under the general tone of strengthening supervision and preventing risks, it is expected that 2024 will be a year of steady growth of M&A and restructuring business, which will help boost the vitality of the capital market." M&A and restructuring can not only inject high-quality targets, but also help clear non-performing assets, and help improve the quality of listed companies through a two-pronged approach. The relevant person in charge of Minsheng Securities Investment Bank said that the A-share market is expected to usher in a large number of opportunities for listed companies to non-listed companies, and even listed companies to mergers and acquisitions of listed companies in the next few years. It is worth noting that "at present, industrial mergers and acquisitions are becoming the mainstream trend of mergers and acquisitions of listed companies and the support direction of regulatory priorities." The relevant person in charge of the investment banking committee of Zhongtai Securities said that Zhongtai Securities adheres to the industry-focused development model, continuously improves the ability of industry research and resource integration, helps scientific and technological innovation enterprises explore potential high-quality resources in the same industry or upstream and downstream, and achieves quality and efficiency improvement through mergers and acquisitions, and effectively promotes the transformation and upgrading of the industry. Looking back on 2023, the company has completed a total of 10 M&A and restructuring financial advisory projects, involving more than 37 billion yuan, and the scale and revenue of financial advisory business have achieved steady growth. As a brokerage, how to better grasp the business opportunities of mergers and acquisitions? The person in charge said that in the next step, Zhongtai Securities will actively respond to the national policy guidance, continue to deeply lay out the field of mergers and acquisitions, give full play to the role of transaction matchmakers, dig deep into market demand, continue to pay attention to potential opportunities, help improve the quality of listed companies through mergers and acquisitions, and do a good job in serving the "main force" of the real economy. Huatai United Securities said that investment banks should return to the origin of serving the real economy, focus on scientific and technological innovation, actively guide and promote the efficient implementation of mergers and acquisitions and restructuring of leading technology-based enterprises, carry out industrial integration, make the value of the "big" industrial chain, and contribute financial strength to Chinese-style modernization. "Investment banks should have in-depth insight into the upstream and downstream industries of enterprises, go deep into the industrial chain to help enterprises efficiently match industrial resources, provide professional support for the long-term value enhancement of enterprises, and promote industrial optimization and upgrading." Strictly control the entrance of the market and be a good "gatekeeper" of the capital marketWith the operation of the Science and Technology Innovation Board becoming more and more mature, the ecosystem of the capital market with Chinese characteristics continues to improve. "As the 'gatekeeper' of the capital market, maintaining financial stability is the duty and mission of securities companies. The new 'National Nine Articles' issued this year advocate stability as the keynote, strict words, focus on preventing and resolving financial risks, strengthen the foundation, and strictly supervise and manage, which is of extraordinary significance for enhancing the internal stability of the capital market. The relevant person in charge of the Investment Banking Committee of Zhongtai Securities said that as a securities company, Zhongtai Securities will play the role of the "gatekeeper" of the capital market under the correct guidance and orderly supervision of the regulatory authorities, help create a good new ecology of the capital market, and form a strong synergy with all parties in the market to promote the high-quality development of the capital market. The relevant person in charge of Minsheng Securities Investment Bank said that securities investment banks should strictly abide by the three internal control lines of defense. The project team is the first line of defense, the quality control department and other organizations are the second line of defense, and the kernel, compliance, risk control and other departments are the third line of defense. "In the future, investment banks should further return to the origin of serving the real economy, promote the effective allocation of resources through more professional financial services, stand on the first line of the stable development of the capital market with stricter standards, and match the development requirements of the capital market in the early stage with higher quality investment banking services." Huatai United Securities said.
Source of this article: China Securities Journal
Author: Li Mengyang
WeChat editor: Wang Qian
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