For some time now, influenced by complex market factors both domestically and internationally, the A-share market has been under continuous pressure, making it difficult for resource allocation, value discovery, wealth management, and investment functions to be fully realized. Regardless of how the market evolves and develops, it always follows its own inherent laws. Gaining clarity on history can aid in foreseeing the future. At present, broadening one's perspective and thinking calmly can help accurately grasp the historical position of the A-share market, discern the marginal improvements in the supply and demand relationship of the stock market, and patiently wait for a series of measures to invigorate the market to accumulate momentum and take effect. Recently, Securities Times has launched a series of reports titled "Discovering the Investment Value of A-shares," presenting the positive changes happening in the A-share market from multiple angles through in-depth interviews and data mining. The aim is to build consensus, boost confidence, and jointly promote the A-share market to emerge from its doldrums and embark on a path of healthy and prosperous development. Please pay close attention.
Technological innovation can give rise to new industries, models, and drivers of growth, and is a core element in the development of new qualitative productive forces. Enterprises are the "question setters," "examiners," and "answerers" of technological innovation. In recent years, the emphasis on technological innovation among listed companies in China has been continuously increasing, with R&D investment growing steadily, which not only significantly enhances the technological level and market competitiveness of the listed companies themselves but also provides a continuous driving force for the economic transformation and upgrading, as well as the conversion of old and new drivers in China.
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The capital market has become an accelerator for China in cultivating and developing new qualitative productive forces. Over the past five years, the cumulative R&D investment of A-share listed companies has reached 6.4 trillion yuan, accounting for half of the national corporate R&D investment; the number of patents accounts for one-third of the national total. In the view of interviewed experts, industries such as information technology, biotechnology, new energy, new materials, high-end manufacturing, and services play a key leading role in promoting the transformation and upgrading of China's economic structure, containing tremendous development opportunities.
Listed companies are actively engaged in technological innovation. In the little-known areas of technological "bottlenecks," the long-term monopoly of high-end equipment by foreign enterprises is being broken.
"Wireless communication test instruments are the 'rulers' of the mobile information superhighway; without 'rulers,' the deployment of 4G and 5G will be extremely difficult," Wang Xiaolei, Chief Financial Officer and Secretary of the Board of Directors of Chuangyuan Xinke (Shanghai) Technology Co., Ltd., introduced to the reporter, stating that wireless communication test instrument equipment had long been monopolized by foreign enterprises.
Through continuous R&D investment, Chuangyuan Xinke has gradually mastered several core technologies, including ultra-high-speed baseband signal processing platforms, multi-mode wireless communication physical layer protocols, millimeter-wave circuit design, and testing, gradually breaking the monopoly of foreign enterprises and becoming the domestic leader in the industry of wireless communication test instruments.
Chuangyuan Xinke's continuous R&D investment to break international monopolies in the field of wireless communication test instruments is a microcosm of Chinese listed companies' commitment to technological innovation. There are many more listed companies that have achieved fruitful results in enhancing the resilience and security level of China's industrial and supply chains. For example, Jinchuan Group, through independent research and development in the field of high-purity metals, has produced ultra-high-purity copper, cobalt, and nickel products for chips, breaking the monopoly of Japanese and American companies in that market.
These achievements are a reflection of listed companies seizing major national strategic opportunities, developing key core technologies, increasing capital investment, and empowering product innovation through technological innovation. In recent years, the scale and intensity of R&D investment by listed companies have been steadily rising. Data from the China Listed Companies Association shows that in the first half of the year, the total R&D investment of A-share companies was about 750 billion yuan, a year-on-year increase of 1.3%, maintaining growth for many years. Strategic emerging industries, high-tech manufacturing, and industries such as computers, electronics, and mechanical equipment have shown vigorous innovative vitality, with an R&D intensity of over 5%.
Looking at a longer time frame, continuous R&D investment has made listed companies the main force in technological innovation. As of the end of 2023, over the past five years, the cumulative R&D investment of A-share listed companies has reached 6.4 trillion yuan, accounting for half of the national corporate R&D investment, and the number of patents accounts for one-third of the national total.Equipment upgrades provide a platform for technological implementation
If R&D investment is a key factor for enterprises to enhance their competitiveness, driving technological innovation and achieving product innovation, then equipment upgrades provide a platform for these new technologies and products to be realized.
Beijing Norland Biotech Co., Ltd. mainly engages in the research and development, production, and sales of innovative drugs such as gene therapy drugs and recombinant protein drugs, as well as ophthalmic drugs. The deputy general manager of the company, Li Yanwei, pointed out to the reporter that in order to expand the production capacity of ophthalmic drugs, this year, the company has carried out the transformation of the multi-dose eye drop production line and has built a new single-dose eye drop production line with an annual production capacity of 120 million doses. The additional capacity will ensure a stable market supply and will also generate more revenue, laying the foundation for the company's rapid development.
Large-scale equipment upgrades not only improve production efficiency but also create new market opportunities for listed companies. Sany Heavy Industry, Li Ju Thermal Energy, and Swan Shares all mentioned on the investor interaction platform that large-scale equipment upgrade policies help to accelerate the replacement of old equipment, stimulate potential demand, and have a positive role in promoting the recovery of the industrial sector. Tian Xuan, Dean of the National Institute of Financial Research at Tsinghua University, pointed out in an interview with the Securities Times reporter that by eliminating backward production capacity and introducing advanced and efficient new equipment, enterprises can effectively reduce resource waste and improve resource utilization, promoting the industry to develop in a high-end and intelligent direction, thereby promoting industrial upgrading and structural optimization, and promoting a high-level dynamic balance between the supply and demand sides.
It is worth mentioning that large-scale equipment upgrades also show strong pulling power in driving investment growth. Luo Yifei, Chief Statistician of the Investment Department of the National Bureau of Statistics, recently stated that various regions and departments are strengthening their support for large-scale equipment upgrades, actively promoting the implementation of policies, and leading all investments with equipment and tool purchase investment growth. From January to July, the investment in equipment and tool purchase increased by 17.0% year-on-year, which is 13.4 percentage points higher than the growth rate of all investments; it has driven the growth of all investments by 2.2 percentage points, an increase of 0.1 percentage points compared to the first half of the year.
"Top students" continue to increase investment in scientific and technological innovation
In recent years, while enterprises have increased their independent R&D investment, the country has also strengthened the construction of a policy system that serves scientific and technological innovation. In the first half of the year, the Ministry of Finance and the Ministry of Science and Technology issued the "Central Guidance for Local Science and Technology Development Fund Management Measures," guiding funds to support major scientific and technological tasks, regional science and technology innovation system construction, construction of scientific and technological innovation bases, transfer and transformation of scientific and technological achievements, and free exploration of basic research. The People's Bank of China, in conjunction with the Ministry of Science and Technology and other departments, established a 500 billion yuan re-lending for scientific and technological innovation and technical transformation, of which 100 billion yuan is specifically for supporting the first loans of technology-based small and medium-sized enterprises in their start-up and growth stages.
Zhu Keli, Executive Director of the China Information Association and Founding Dean of the National Research Institute for the New Economy, pointed out to the reporter that the relevant policies provide a clear direction for scientific and technological innovation by strengthening the main position of enterprises in scientific and technological innovation and establishing mechanisms to cultivate and strengthen leading technology enterprises. This helps to stimulate the innovation vitality of enterprises, promote their increased R&D investment, and improve their independent innovation capabilities.
Thanks to the joint efforts of enterprises and policies, China's scientific and technological innovation has accelerated and achieved results. The latest data from the National Intellectual Property Administration shows that in the first half of this year, China authorized 554,000 invention patents, a year-on-year increase of 28.0%. As of June this year, the number of valid domestic invention patents in China reached 4.425 million, with the proportion of invention patents owned by enterprises increasing to 72.8%, and corporate innovation has become more active. The number of high-value invention patents per 10,000 people reached 12.9, achieving the expected target of the national "14th Five-Year Plan" ahead of schedule.
Scientific and technological innovation is the core element of developing new quality productive forces. As the "top students" among enterprises, listed companies have continued to focus on key areas and weak links in the construction of modern industrial systems in recent years, increasing R&D efforts in fields such as integrated circuits, industrial mother machines, and scientific research instruments, which are subject to bottleneck constraints. At the same time, they aim at the commanding heights of future technology and industrial development, accelerating scientific and technological innovation in fields such as new generation information technology, artificial intelligence, biotechnology, new energy, and new materials, and cultivating the development of emerging industries and future industries.Many listed companies have conveyed signals that they will continue to promote technological innovation and increase R&D investment. ZTE Corporation stated that in 2024, the company will continue to strengthen its R&D capabilities, expand 5G-A innovation, applications, and practices, and persistently enhance areas such as all-optical networking, computational infrastructure, and large model development, actively positioning itself in cutting-edge technologies and value patents. Fuyao Glass has made it clear that it will continue to strengthen technological innovation around new materials, new processes, new technologies, and cross-domain cooperation, increase R&D investment, accelerate R&D speed, promote product upgrades, and enhance the company's core competitiveness.
Looking ahead, Tian Xuan has judged that in the context of developing new quality productive forces, industries such as information technology, biotechnology, new energy, new materials, high-end manufacturing, and the service industry are closely related to the country's long-term development strategy, and possess strong growth and innovation. They play a key leading and promoting role in driving the transformation and upgrading of China's economic structure, containing tremendous development opportunities.