Securities Times reporter Chen Jiannan

  Socialism with Chinese characteristics has entered a new era. my country's economy has shifted from a stage of high-speed growth to a stage of high-quality development. State-owned enterprises and private enterprises have joined hands to embark on a new journey.

In the capital market, state-owned enterprises have given full play to the "ballast stone" role of the A-share market in terms of revenue, net profit, shareholder returns, and social responsibility.

  Private enterprises have demonstrated strong market competitiveness in the field of science and technology.

The scale of the hard technology industry, which is dominated by private enterprises, has exploded. The power equipment industry has historically topped the industry market value list, and many private enterprise technology leaders have entered the top 20 in terms of market value.

A-share "hard technology" is in the limelight, and a number of emerging industry companies have emerged from the 100 billion market value army.

  Since the 18th National Congress of the Communist Party of China, my country has taken innovation as the first driving force for development, fully implemented the innovation-driven development strategy, achieved major breakthroughs in many fields, and entered the ranks of innovative countries.

Under the strategy of rejuvenating the country through science and technology, listed companies pay more and more attention to technological innovation, and the overall R&D investment in the A-share market has increased year by year.

  According to statistics from Securities Times·Databao, the total R&D expenditure of more than 4,600 A-share listed companies in 2021 will exceed 1.3 trillion yuan, and the average R&D expenditure of each company will reach 286 million yuan.

From the perspective of R&D efforts, last year, the overall R&D share of A-shares accounted for more than 2% of total revenue for the first time, an increase of more than 1 percentage point compared to 2012.

  Against the background of the rapid growth of R&D investment, the output of intellectual property has also grown substantially.

As of the end of last year, the total number of patents of A-share listed companies exceeded 1.29 million, a substantial increase of more than 3 times compared with the end of 2012.

From the average point of view, the average number of patents per listed company exceeded 300 at the end of last year, and the average at the end of 2012 was only 83.

  Central SOEs and state-owned enterprises are regulars on the list of total R&D expenditures. China State Construction, China Railway, PetroChina and many other central enterprises spent more than 20 billion yuan in R&D last year.

Private enterprises in Shanghai invest heavily in R&D. Seven of the top 20 A-share R&D efforts last year became private enterprises.

The R&D investment of Shanghai private enterprises has been increasing year by year. Last year, the R&D investment exceeded 460 billion yuan, and the investment reached 3.49%, a new high in the past 10 years, a substantial increase of nearly 1.4 percentage points compared with 10 years ago.

Private enterprises have contributed more and more to the R&D intensity of the entire A-share market. Last year, the total R&D expenditure accounted for 35% of the entire A-share market, hitting a 10-year high and a significant increase of more than 11 percentage points compared with 10 years ago.

  With the establishment of the Science and Technology Innovation Board and the reform of the ChiNext registration system, more and more strategic emerging industries have entered the capital market.

Forging ahead on a new journey and making contributions to a new era, private enterprises are the witnesses, builders and beneficiaries of this great era.

  According to statistics from Databao, 80% of the companies on the Growth Enterprise Market and the Science and Technology Innovation Board are private enterprises.

The proportion of private enterprises in the technology industry is significantly higher than that of A-shares as a whole. Among "hard technology" companies (including Shenwan first-class power equipment, pharmaceutical biology, electronics, computers, defense and military industries, and Shenwan's second-class automation equipment and other industries), more than Seven became a private enterprise.

  On the whole, the "hard technology" sector has continued to grow in the A-share market. Over the past 10 years, more than 1,000 listed companies have been added, and the market value has increased from about 13% 10 years ago to nearly 32%.

The total market value of the power equipment industry led by new energy has surpassed that of the banking industry, and it has historically topped the market value of Shenwan’s first-class industry, demonstrating its status as a new energy power.

  "Hard technology" is gaining momentum.

As of the end of September 2022, the top five market capitalizations of Shenwan’s first-tier industries are power equipment, banking, pharmaceutical biology, food and beverage, and electronics. The total market value of these five industries accounts for about 40% of the total market value of A shares, of which three "" Hard technology" industries are among them.

Compared with 10 years ago (2012), the top five by market value are banking, petroleum and petrochemical, non-bank finance, pharmaceutical biology, and real estate, most of which are traditional industries.

  Innovation drives growth, and the market value of the "hard technology" sector led by power equipment has grown rapidly.

The market value of the power equipment industry at the end of September this year has increased by more than 12 times compared with the end of 2012, which is the industry with the highest growth rate.

The market value of the electronics industry has increased by more than 10 times, the market value of the computer industry has increased by more than 5 times, and the market value of the national defense industry and pharmaceutical biology has increased by more than 4 times.

Another important part of "hard technology", the robotics industry, has increased its market value by more than 10 times in the past 10 years.

  Not only is the market value growing, but the revenue and net profit of the "hard technology" sector are also growing rapidly.

The net profit of the "hard technology" sector reached 631 billion yuan at the end of last year, an increase of over 470% compared to 2012.

The two major sectors of power equipment and automation equipment have grown by more than 40% in net profit in the past two years, and the growth rate of net profit of medicine and biology has exceeded 29%.

  From the perspective of institutions, the future growth of "hard technology" is still worth looking forward to.

The agency unanimously predicts that the net profit of the power equipment industry will have a compound growth rate of close to 56% this year and next, ranking second in the first-class industry of Shenwan.

The national defense and military industry predicts that the compound growth rate of net profit will exceed 40%, the two major industries of computer and medicine and biology will exceed 20%, and the automation equipment industry will be close to 36%.

  Hundreds of horses compete for the best, and bravely fight for the first place.

Over the past decade, a number of influential, innovative and globally competitive technology leaders with a market value of 100 billion have emerged in the capital market.

According to statistics from Databao, as of the end of September, private technology companies such as CATL, BYD, LONGi Green Energy, and Mindray Medical have entered the top 20 A-share market capitalizations. Most of these companies are global leaders in the industry.

The obvious contrast is that by the end of 2012, most of the top 20 companies by market capitalization were concentrated in state-owned enterprises represented by financial stocks.

  The 100 billion market value army is "emerging". It is not only the growth of private enterprises and the ranks of the 100 billion market value, but also the rise of technology leaders in emerging fields.

According to statistics from Databao, as of the end of September, among the companies with a market value of 100 billion yuan, 30 belonged to the technology industry, accounting for nearly 26%, including CATL and LONGi Green Energy in the new energy industry, Mindray Medical and WuXi AppTec in the pharmaceutical and biological sector, Hikvision, Luxshare Precision, etc. in the electronic information industry.

  Every major progress in the capital market is closely related to the top-level design.

Since the 18th National Congress of the Communist Party of China, my country has taken innovation as the primary driving force for development, and fully implemented the innovation-driven development strategy.

In the report of the 19th National Congress of the Communist Party of China, it was proposed to "establish a sound economic system for green, low-carbon and circular development", which sounded the clarion call for the rapid development of new energy.

  The development of science and technology is inseparable from the support of the capital market.

Over the past 10 years, the cumulative IPO fundraising of the "hard technology" sector has exceeded one trillion yuan, and the refinancing amount has exceeded 2.5 trillion yuan.

From the perspective of the proportion of fundraising, "hard technology" has become more and more popular. Since the beginning of this year, the proportion of IPO fundraising has reached 55%; the proportion of refinancing has exceeded 35%, hitting a new high in 10 years.

  In the face of fluctuations in domestic and foreign markets in the first half of this year, the operating scale of listed state-owned companies has grown steadily.

Data treasure statistics show that in the first half of this year, 1,330 listed state-owned enterprises achieved revenue of more than 23 trillion yuan, a year-on-year increase of 8.85%; net profit of 2.1 trillion yuan, a year-on-year increase of 4.89%.

In the past 10 years, the revenue and net profit of listed state-owned enterprises have shown a steady growth trend, with an average growth rate of about 7% over the years.

  From the perspective of the entire A-share market, state-owned enterprises have given full play to the role of "ballast stone".

According to this year's semi-annual report data, listed state-owned enterprises contributed 67% of A-share revenue and more than 70% of net profit.

In terms of shareholder returns, the amount of cash distributed by listed state-owned enterprises in 2021 will exceed 1.25 trillion yuan, a record high, accounting for over 69% of the total A-share cash distribution.

In the past four years, the average cash distribution of listed state-owned enterprises accounted for more than 68% of A shares.

  With the development of the capital market, the private economy has shown a rapid growth momentum.

As of the end of June, there were 2,933 private enterprises listed on the A-share market, accounting for nearly 61% of the total market.

  In terms of revenue, in the first half of this year, the revenue of private enterprises in Shanghai exceeded 7.2 trillion yuan, accounting for 20.79%, hitting a new high in 10 years.

In terms of net profit, the net profit of Shanghai private enterprises in the first half of the year accounted for 16.33%; in terms of market value, the total market value of Shanghai private enterprises A shares reached 39.39% at the end of June, which also hit a new high in 10 years.

  Shanghai private enterprises also play an increasingly important role in employment.

As of the end of last year, Shanghai private enterprises contributed 33.89% of the employees of the entire A-share market, a 10-year high, an increase of nearly 15 percentage points compared to the end of 2012.

In terms of salary, the salary paid to employees by private enterprises in Shanghai accounted for 23.65% of the entire A-share market last year, hitting a 10-year high, an increase of nearly 13 percentage points compared to the end of 2012.