Full Breakdown
Xi’s 2018 Vision Launches China’s Star Market, a Tech-Focused Capital Engine
7/11/2026, 12:22:33 PM
Launch of the Sci-Tech Innovation Board
In 2018 President Xi Jinping announced a new tech-centric board on the Shanghai Stock Exchange. Seven and a half months later, on 22 July 2019, the board—officially the Sci-Tech Innovation Board and popularly called the Star Market—began trading with an initial batch of 25 companies, including Suzhou HYC Technology and Raytron Technology.
Policy Background and Reform Rationale
The Star Market was introduced as part of broader stock-market reforms aimed at correcting long-standing criticism that China’s exchanges failed to channel capital to its most dynamic sectors. By creating a dedicated platform for frontier technologies, Beijing sought to reduce reliance on foreign-supplied innovations that the United States has been restricting, and to curb the outflow of new-economy firms to overseas listings.
Scale, Leading Companies and Economic Role
The board now accounts for a combined market capitalisation of 15.5 trillion yuan (? US$2.3 trillion) within China’s US$16 trillion stock market. Listed firms span artificial-intelligence and semiconductor fields, notably Cambricon Technologies, Moore Threads Technology, and the nation’s largest chipmaker, Semiconductor Manufacturing International Corporation (SMIC).
Official Statements & Analyst Perspective
Analysts view the Star Market as a vehicle for “leveraging the capital market to support Beijing’s drive for technological innovation and domestic substitution.” The board’s creation was interpreted by market watchers as a strategic move to align financing with the state’s high-tech priorities.
Verbatim Quote
> “Benefiting from the reform dividend, the Star Market is accelerating to become an innovative capital market that serves hard technologies, cultivates future industries and propels the high-quality growth of China’s economy.” — Hao Danyang, analyst, Shenwan Hongyuan Group
The Star Market’s rapid growth underscores its role as a financial engine for China’s frontier-technology sector, positioning the country to advance self-reliance in AI, robotics and semiconductors while fostering high-quality economic expansion.
