From the experimental fields to new heights, the exploration and development of the Sci-Tech Innovation Board (STAR Market) hold significant importance for China's capital market. Since its establishment, the STAR Market has positioned itself to serve technology innovation enterprises that align with national strategies, break through key core technologies, and enjoy high market recognition. By setting more inclusive listing conditions, the STAR Market facilitates direct financing for various types of technology innovation enterprises, enhancing the service level of the capital market in improving China's core technological innovation capabilities. At the same time, the STAR Market is an important part of the comprehensive registration-based reform. By further optimizing the listing process and improving the efficiency of IPOs, it allows more funds to concentrate on the field of technology innovation, better solving the 'bottleneck' issues in the technology sector. Over the past three years, the STAR Market's institutional system has been gradually improved, and a series of innovative systems have been implemented and taken effect, creating a new world of support for 'hard technology' enterprises.
China has accumulated a large number of industrial clusters in industries such as new energy vehicles, semiconductors, aerospace, biomedicine, cloud computing, and new materials. With the support of capital markets such as the Sci-Tech Innovation Board (STAR Market), it is expected to achieve leapfrog development. The STAR Market performed outstandingly overall in 2022. Looking ahead to 2023, the role and importance of the registration-based system on the STAR Market will be further highlighted. The number of listed companies on the STAR Market will continue to expand, and the industries and tracks covered by science and technology innovation enterprises will become broader. The annual fundraising amount from the STAR Market will continue to increase.
The registration-based system is a key measure for developing direct financing, especially equity financing, and a major reform aimed at improving the market-oriented allocation of factors. Frost & Sullivan believes that the development and growth of the Sci-tech Innovation Board demonstrate a good demonstration effect of financial markets supporting China's technological innovation. It is expected to further enhance its influence in global capital markets, attract long-term investors to enter the market, serve the real economy more efficiently, and promote the healthy development of the Chinese economy.
