China's STAR Market is thriving, with listed firms showcasing impressive growth and resilience. This hard tech-driven market is a key player in China's innovation board, and its quarterly reports reveal a promising future.
The Power of Hard Tech
In the first three quarters of 2025, STAR Market companies demonstrated a robust performance. Their operating revenue reached an impressive 1.11 trillion yuan, a 7.9% increase year-on-year. Net profit followed suit, growing by 8.9% to 49.27 billion yuan. But here's where it gets even more intriguing: the third quarter saw a remarkable 75% year-on-year increase in net profit, a true testament to the market's momentum.
Growth Across the Board
Over 70% of STAR Market companies experienced revenue growth in the first nine months, with nearly 60% enjoying net profit growth. An astonishing 158 companies witnessed a net profit increase of over 50%, and 46 companies turned losses into profits. These figures paint a picture of a market brimming with potential.
The Hard Tech Sector's Success
The hard technology sector, encompassing integrated circuits, chip design, artificial intelligence, biomedicine, and new energy companies, has been a driving force behind this success. Reform efforts and substantial R&D expenditure have fueled this thriving trend.
In the integrated circuit industry, the 121 enterprises achieved a combined 25% increase in operating revenue and a 67% growth in net profit year-on-year during the first three quarters. The chip design sector, too, benefited from increased downstream demand, with 80% of enterprises experiencing revenue growth and 60% seeing net profit growth during the same period. Overall, the sector witnessed a remarkable 141% year-on-year increase in net profit.
Investing in Innovation
The total R&D investment of STAR Market companies reached an impressive 119.75 billion yuan, a significant 2.4 times the board's net profit. With a median R&D intensity of 12.4%, these companies are committed to innovation, a key differentiator from other sectors in the A-share market.
Policy Support and Future Prospects
The China Securities Regulatory Commission (CSRC) established the sci-tech growth tier in June 2025 to support high-quality tech enterprises that may not yet be profitable. Since then, the STAR Market has implemented steady reforms, including the introduction of senior professional institutional investors and pre-review mechanisms.
Industry experts believe that with continued policy support and the release of internal growth drivers, the STAR Market is well-positioned to cultivate leading hard technology enterprises, further advancing China's technological self-reliance.
And this is the part most people miss: the potential for controversy. With such a focus on hard tech and innovation, some may question the balance between growth and sustainability. Is this market prioritizing short-term gains over long-term environmental and social impact? What are your thoughts? Feel free to share your opinions in the comments below!
