STAR Market turns into innovation powerhouse in China

The Shanghai Stock Exchange's STAR Market, established just five years ago, is already making an impact on China's innovation landscape and fitting well with the national strategy to develop new quality productive forces.

A patent research report by third-party firm PatSnap, published on Monday, reveals that STAR-listed companies hold a remarkable average of 210 patents, far exceeding the national average and outperforming other domestic stock markets.

The statistic underscores the STAR Market's role as a breeding ground for innovative companies. With 573 listed firms holding a combined total of 257,000 patents, including 78,000 core invention patents, the STAR Market stands out as a leader in fostering cutting-edge technologies.

The average invention patent count per company on the STAR Market reaches 53, more than double the figure for other capital markets, including the Shenzhen ChiNext.

STAR fits with national strategies to boost innovation

The focus on innovation on the STAR Market aligns perfectly with China's national strategy to develop New Quality Productive Forces. This initiative emphasizes the adoption of digital technologies and innovative approaches to upgrade the industrial structure and propel economic growth.

Industries like next-generation information technology, biomedicine, advanced manufacturing, new materials, and new energy are leading the charge in terms of patent applications within the STAR Market. Notably, the new energy sector is experiencing particularly rapid growth, reflecting China's commitment to clean energy and the booming new energy vehicle industry.

Beyond fostering innovation, the STAR Market's role in facilitating capital acquisition has been instrumental in accelerating the commercialization of scientific research breakthroughs.

This environment has allowed companies with core technologies to achieve high-quality growth.

A prime example is Kingsoft Office, a STAR Market-listed company with a market value of 96.3 billion yuan (US$13.4 billion) as of Monday.

The Beijing-based software giant launched an innovative artificial intelligence writing feature in its WPS AI, offering users automatic essay-writing functionalities with various roles from students, and secretaries to business partners etc. With over 602 million monthly active devices globally, Kingsoft Office's WPS is a competitor to Microsoft Office in the Chinese market.

PatSnap's report also highlights the geographical distribution of innovation within the STAR Market. Companies from Shanghai, Beijing as well as Jiangsu, Guangdong, and Zhejiang provinces (not necessarily in that order) lead in terms of the number of patents held.