Biz / Tech

Firms' vital role in new STAR board

Zhu Shenshen
Venture capital and private equity organizations have important parts to play in new technology market, industry officials tell forum in Shanghai. 
Zhu Shenshen

Research institutes and venture capital firms have played important roles in the ecosystem of the new Shanghai STAR Market, industry officials told a forum in Shanghai. 

Venture capital (VC) and private equity (PE) firms can support startups, which represent future trends but with limited profit or income in the initial stage, before they apply for STAR IPOs, or initial public offerings, speakers told a forum on the Nasdaq-style sci-tech board at Fudan University. 

“China urgently needs a whole innovation ecosystem covering researchers, VC, PE and capital markets including the new STAR Market,” said Liu Di, vice general manager of the Shanghai Stock Exchange (SSE).

Up to June 27, 141 firms had applied for IPOs in STAR, covering information services and software, computer and electronics, pharmaceutical and industrial equipment firms.

Several firms have opened subscriptions for IPOs in the STAR Market, a prelude for shares to be listed on the new board.

Technology innovation faces uncertain risks and challenges on profitability, covering issues like long-term research, huge investment in initial stages and rapid technology upgrades, said Ma Xianfeng, vice director of the China Institute of Finance and Capital Markets, a research institute of the China Securities Regulatory Commission.

Universities and research institutes should contribute resources and power to help Shanghai establish itself as a global innovation center. Fudan University will seek opportunities in the STAR Market and integration of resources in the Yangtze River Delta.

Fu Yuan Hui, a Fudan-backed accelerator, will offer learning and related resources to help local startups to connect with the capital markets including the new STAR board, said Wang Fu, chairman of Fu Yuan Hui.

In the next decade, technologies in fantasy films will “turn reality” with booming AI and VR technologies, said Zhang Suyang, founding partner of the Volcanic Ventures and a veteran investor. 

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