【CGTN】China's revolutionary STAR board completes five years

2024/06/13

On June 13, 2019, China's Science and Technology Innovation Board, also known as the STAR Market, was launched at the Lujiazui Forum.

This marks a milestone in China's financial history. For the very first time, the board accepted listings via the registration-based system rather than the traditional approval system.

That means IPOs will no longer need advance approval from the regulators, but only a confirmation that their issuance breaches no regulations.

And starting February last year, all of China's boards started to enforce the registration-based IPO system.

YAN HONG Deputy Dean of Academic Affairs and Faculty, Shanghai Advanced Institute of Finance, SJTU "Obviously the process would take a long time to mature. We still face a lot of issues in this process. But the start of the registration-based system heralded a new era for the capital market – to lead the market on a path that is in line with global capital development."

Last year, these companies devoted over 156 billion yuan, or over 21.5 billon U.S. dollars, into research investments – a year-on-year jump of over 14 percent.

In these companies, over 30 percent of the employees are working in research and development.

YAN HONG Deputy Dean of Academic Affairs and Faculty, Shanghai Advanced Institute of Finance, SJTU "When it was first launched, it didn't require companies to be very mature, or to have a lot of profits. It allowed startups or early-stage science and technology companies to seek funding from the market."

CHEN TONG Shanghai "This year's Lujiazui Forum is expected to be held in Shanghai next week. China's financial regulators earlier said they would announce more reforms in the capital market during the upcoming forum – aiming to construct a healthier and more stable market. Chen Tong, CGTN, Shanghai."