Beijing firms shine in new tech board with multiple firsts
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E-mail China.org.cn, July 24, 2019
Beijing tech firms delivered outstanding performances on China's new tech board, STAR Market, which opened for trading on Monday. Five out of the first batch of 25 listed companies are from the Chinese capital, tied with Shanghai for most among Chinese cities.
The five companies-China Railway Signal & Communication (CRSC), Traffic Control Technology, Beijing Tianyishangjia New Material, Worldia Tools, and Piesat-combined to raise 12.67 billion yuan (US$1.84 billion), the most among cities and regions. They account for 40.75% of all funding raised in STAR Market's first day of trading.
All five companies demonstrated strong price-to-earnings ratio according to an analysis report, up from Piesat's 46.15 times to CRSC's 18.8 times at the low end. Their R&D expenses totaled 1.5 billion yuan, accounting for 48.39% of all 25 listed companies.
The Chinese capital shone through in multiple other indicators regarding the new tech board. Among 149 tech firms awaiting IPO in the STAR Market, 30 are from Beijing, ranking first among cities and regions.
The establishment of the STAR Market was announced at the first China International Import Expo in November 2018. Since then, Beijing's municipal authorities have attached great importance to selecting and guiding local firms to list on the new tech board.
As a hub of high-tech firms, talents, and investment, Beijing's R&D expense accounts for 6% of its GDP, ranking first in the country. The city also boasts a diverse portfolio of high-tech firms, covering fields such as high-end manufacturing, smart hardware, the internet, AI, big data, and cloud computing.
According to reports, 200 innovation startups are founded in Beijing per day. The city is also home to half of China's unicorn companies, ranking second in the world. In a new ranking of innovative cities by Nature magazine, Beijing was again placed No. 1 in the world.
"Beijing will fully leverage its strengthen as the country's science and technology center to help high-quality tech firms develop soundly and grow stronger and bigger through the capital market," said a person in charge at the city's financial supervision bureau.
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