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From July 7th to 8th, the online international roadshow for the third anniversary of the Science and Technology Innovation Board was successfully held. Representatives from more than 50 institutions in Europe, America, the Middle East, Japan, South Korea, Southeast Asia and other regions participated in the event. Themed on “High-quality Development of the STAR Market”, the roadshow featured guests from well-known investment banks, large asset management companies and major index providers at home and abroad, focusing on the development achievements of the STAR Market and how international investors can invest in the STAR Market In-depth discussions on topics such as grasping China’s economic growth opportunities and the trend of indexing investment on the Science and Technology Innovation Board.
The internationalization level of the Science and Technology Innovation Board continues to improve
In June this year, the Science and Technology Innovation Board celebrated its third anniversary. As the innovation-driven development of the Sci-Tech Innovation Board and the national strategy of technological self-reliance and self-improvement, the effectiveness of serving the real economy and high-quality development continue to emerge, the “hard technology” sector is also increasingly attractive to overseas funds.
The data shows that as of the end of May this year, the shareholding of foreign investors on the STAR Market accounted for more than 4% of the circulating market value, and the total transaction value of foreign capital in the first five months of this year accounted for more than 9%. International investors have become important participants in the STAR Market. one. For international investors, high growth, high liquidity, dazzling IPO financing amount, and the strong scientific and technological attributes of serving the country’s development strategy are the “comparative advantages” that the Science and Technology Innovation Board has when they look at the global market.
Overall, the Science and Technology Innovation Board adheres to the “hard technology” sector positioning and has become the first choice for my country’s “hard technology” companies to go public. As of the end of June this year, there were 431 companies listed on the Science and Technology Innovation Board, with a total of 623.5 billion yuan in IPO financing. In the first half of this year, the amount of funds raised by IPOs on the SSE STAR Market exceeded the main board for the first time.
During the international roadshow, Fu Hao, deputy director of the Global Business Development Committee of the Shanghai Stock Exchange, mentioned that in the past three years, the “hard technology” background of the Sci-tech Innovation Board has continued to be highlighted, the company’s overall performance has grown rapidly, and the overall revenue and net profit of the Sci-tech Innovation Board. The growth rate has been rising for three consecutive years, becoming a new force for the high-quality development of the real economy. The internationalization level of the STAR Market has also continued to improve, and international investors have become one of the important players in the STAR Market. In recent years, the channels for international investors to invest in the STAR Market have continued to expand. Currently, international investors can directly invest in the STAR Market through QFII, RQFII and Shanghai-Hong Kong Stock Connect, and can also invest in products such as the STAR 50 ETF issued in overseas markets.
Institutional investors participating in the meeting said that global investors are currently looking for high-quality growth stocks with potential, and the SSE STAR Market is in a unique position. On the one hand, it brings together the most important science and technology companies in China. To a large extent, it relies on the rise of these companies; on the other hand, the Science and Technology Innovation Board provides investors with many investment channels, which facilitates global investors to allocate Chinese growth stocks.
“Science and Technology Innovation Board continues to play the role of ‘experimental field’, adopts many of the latest market mechanism arrangements, and is more in line with the international market, bringing a good investment experience to international investors. It is hoped that in the future, the Science and Technology Innovation Board will continue to improve settlement and trading mechanisms. To be at the forefront of the market in terms of innovation, further facilitate the participation of international investors, and enhance the internationalization level of the Sci-Tech Innovation Board market,” said the above-mentioned investor.
Foreign institutions frequently praise the STAR Market
This international roadshow has not only attracted many well-known sovereign wealth funds, insurance and asset management companies and other medium and long-term funds, but also many newly approved qualified foreign investors since the implementation of the new QFII regulations.
Morgan Stanley Securities (China) Co., Ltd. participated in the online roadshow, and the company’s CEO Qian Jing said: “Past practice shows that the science and technology innovation board, as a pilot for the registration-based reform, has achieved the original intention of the reform and strengthened the capital market. The support function for scientific and technological innovation capabilities and the competitiveness of the real economy has laid a solid foundation for the full implementation of the registration system in the next step. The registration system reform has a huge positive role in promoting the level of the A-share capital market to serve the real economy and improve international competitiveness. We will support the regulators to unswervingly continue to promote the implementation of the comprehensive registration system.”
According to Lu Tian, deputy general manager of Goldman Sachs Gao Hua Securities Co., Ltd., factors such as stable performance, investment convenience, and listing and trading mechanisms that are in line with international capital markets continue to attract international investors. The soon-to-be-launched market maker system will also continue to increase market activity and improve market liquidity.
When talking about the continuous expansion of investment channels and scope of international investors, Lu Tian said: “We see more and more foreign investors participating in the STAR Market through QFII and RQFII; entering the STAR Market through interconnected channels Investments and transactions in China are also becoming more active. Goldman Sachs and Gao Hua also look forward to participating more deeply in the development of the STAR Market and building a bridge between high-quality Chinese assets and international investors.”
Brendan Ahern, chief investment officer of Jinrui Fund, believes that the Science and Technology Innovation Board provides global investors with an opportunity to invest in companies that will lead China’s economic growth in the coming decades.
Indexed investment in the science and technology innovation board is hot
The reporter noticed that indexed investment in the STAR Market has gradually become an important way for international investors to allocate the STAR Market. Since the launch of the SSE Science and Technology Innovation 50 Index, the United States, the United Kingdom, Japan, South Korea and other markets have successively launched a number of products for the Science and Technology Innovation Board 50 Index. At present, there are 12 products related to the Science and Technology Innovation 50 Index in overseas markets, of which the largest The scale of overseas surgical innovation 50ETF is nearly 60 million US dollars. The guests had in-depth exchanges on the current situation and future potential of indexed investment in the Science and Technology Innovation Board.
In fact, companies on the Sci-Tech Innovation Board have the attributes of “hard technology“, and most of them are in the field of cutting-edge technology. For ordinary investors, the threshold for active stock selection investment is relatively high. Index investment represented by ETF will help investors more Well grasp the growth opportunities of science and technology companies and share the growth dividends. Taking the Science and Technology Innovation 50 Index as an example, as of July 6, 2022, although the number of constituent stocks of the Science and Technology Innovation 50 Index is less than one-eighth of the total number of companies on the Science and Technology Innovation Board, the market value accounts for 40%. According to the disclosure of the first quarterly report of 2022, the revenue and profits of the constituent stocks of the Science and Technology 50 Index also accounted for 40% and 50%, respectively. The Science and Technology 50 Index has a strong market representation.
Jin Di, head of the market service department of China Securities Index Co., Ltd., said that the SSE Science and Technology Innovation 50 Index and the three science and technology innovation theme indexes have been released successively in the past three years, providing a tool for observing the market performance of the Science and Technology Innovation Board. The product tracking scale of the Science and Technology 50 Index continues to increase, and there are several products in the overseas market, further enriching the investment choices of global investors.With the steady progress of the construction of the Science and Technology Innovation Board, CSI is making a comprehensive plan for the layout of the science and technology innovation theme index system, including improving the science and technology innovation 50 index-based index system.composite indexand other scale index systems, research and develop a series of first- and second-level industry sci-tech innovation board indices based on the CSI industry classification standards, and launch theme and strategy indices that reflect technological innovation and high-end manufacturing, and respond to green finance development policies, etc., and actively serve many Hierarchical capital market construction.
Wei Zhen, Managing Director of MSCI and Head of Research in the Asia-Pacific Region, believes that the STAR Market, as a new force in the A-share market, has attracted the attention of global investors in recent years. “MSCI initially included A shares in the MSCI Emerging Markets Index in 2018, and initially included the Sci-Tech Innovation Board in the MSCI China Index in 2021, and then launched the MSCI China A50 Connectivity Index. As an important tool for core allocation and risk management, we accompany and witness it. It has marked a series of milestone events in the opening and development of China’s market. In just a few years, the Science and Technology Innovation Board has become an important part of China’s new economic market.” Wei Zhen said.
Xiao Xiao, head of the research and development department of China AMC, pointed out that from a long-term perspective, the Science and Technology Innovation Board is currently ushering in a better allocation time. The Science and Technology Innovation Board focuses on high-growth industries. The “hard technology” background and R&D innovation of these high-tech industries can provide strong support for the long-term growth of the Science and Technology Innovation Board.
Since the launch of the Sci-tech Innovation Board in 2019, the Shanghai Stock Exchange has held the annual international roadshow of the Sci-tech Innovation Board for three consecutive years. In-depth understanding of the development trend of the Sci-tech Innovation Board market and the company’s operation, and practical experienceChina Hi-TechTechnology industry development potential and China’s economic prospects. The Shanghai Stock Exchange said that in the future, the Shanghai Stock Exchange will continue to increase communication with international investors, and to meet the needs of different regions and types of international investors, enrich the form of activities, increase the frequency of promotion, and build effective communication channels for international investors and STAR Market companies. , to further enhance the internationalization level of the Sci-tech Innovation Board market.
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Responsible editor: Shi Xiuzhen SF183