- Shanghai opens capital markets to more ‘hard tech’ companies, including pre-profit innovators
- New policies target AI, semiconductors, robotics and commercial space as private capital takes a bigger role
Shanghai has unveiled a new package of 20 measures to promote private investment, including support for breakthrough technology companies and high-growth startups seeking capital market access.
On August 13, the Shanghai Development and Reform Commission released an action plan implementing national measures to further promote private investment.
The plan focuses on expanding investment opportunities, strengthening financial support and improving the policy environment.
A key measure is support for companies developing critical technologies in emerging industries, including “bottleneck” technologies and high-quality pre-profit technology firms, to list on China’s multi-tier capital markets.
Fifth listing standard
The move follows the securities regulator’s June decision to expand the STAR Market’s fifth listing standard, which allows certain pre-profit companies with advanced technologies to go public, from AI companies to a broader range of hard-tech sectors.
The policy also encourages the use of “compute vouchers,” “model vouchers” and “data vouchers” to reduce AI development costs for private companies.
It will leverage Shanghai’s three major industry funds in integrated circuits, biomedicine and AI to attract more private capital into sub-funds, while encouraging state-owned and private companies to jointly establish CVC and M&A funds.
Investment priorities include AI, semiconductors, biomedicine, intelligent robots, commercial space and the low-altitude economy.
Private companies will also be encouraged to participate in major infrastructure projects such as nuclear power.
Why it matters globally
Private companies already account for a major share of Shanghai’s innovation economy.
They represent about one-third of total fixed-asset investment, while accounting for more than 80% of newly recognized high-tech companies and over 90% of new specialized “little giant” firms in recent years.
The new measures signal three broader shifts: China is becoming more open to financing pre-profit hard-tech companies, Shanghai is strengthening its role as a hub connecting industrial innovation with capital, and private enterprises are gaining greater access to strategic sectors once dominated by state-backed players.
