A vew of Baolong Science and Technology City in Shenzhen in South China's Guangdong Province, on March 16, 2026. Photo: VCG

Six years after China launched the registration-based IPO system on Shenzhen's ChiNext board, the reform has grown beyond an overhaul of listing procedures into an important channel for directing capital toward innovative companies, with experts expecting it to play an even greater role in supporting technological innovation and emerging industries.

The reform formally took effect on August 24, 2020, when the first batch of 18 companies debuted under the registration-based system. The total number of ChiNext-listed companies has since risen to 1,403, according to data cited on Monday by Shenzhen Fabu, the Shenzhen municipal government's official WeChat account.

Looking back at the reform, more diversified and inclusive listing requirements have been one of its key features. According to an earlier report by the Xinhua News Agency citing an official from the Ministry of Industry and Information Technology, the reform significantly streamlined issuance requirements and lowered listing thresholds while strengthening information disclosure. 

The parallel advancement of technological innovation and capital-market reform has produced a strong mutually reinforcing effect, with several of China's leading innovation hubs maintaining a strong presence on ChiNext.

Shenzhen had 166 companies listed on the board as of August 23, ranking first among Chinese cities, followed by Beijing with 130, Shanghai with 81 and Guangzhou, South China's Guangdong Province, with 47, according to industry data cited by Shenzhen Fabu.

In terms of company size, ChiNext has also attracted many industry leaders, with six Shenzhen-based companies on the board exceeding 100 billion yuan ($14.88 billion) in market capitalization, including Mindray and DapuStor, according to Shenzhen Fabu.  

Strong financing capacity has provided vital capital support for the rapid growth and commercialization of emerging industries.

Notably, ChiNext is home to companies across all nine strategic emerging industries, the Shenzhen Economic Daily reported on July 31.

Among the 1,400 companies listed on ChiNext, nearly 90 percent are high-tech enterprises, more than 60 percent operate in strategic emerging industries, and more than 80 percent are privately owned, the report said.

In addition, the 946 strategic emerging-industry companies have a combined market capitalization of more than 13.7 trillion yuan, with five core sectors — next-generation information technology, new energy, new materials, high-end equipment manufacturing and biotechnology — accounting for about 74 percent of the board's total market value and serving as key drivers of its high-quality development.

Over the past several years, ChiNext has brought together a growing number of technology companies in sectors such as semiconductors, software, and robotics, said Bian Yongzu, executive deputy editor-in-chief of Modernization of Management magazine. Access to public financing has enabled some firms to accelerate R&D and expand production, helping strengthen China's technological capabilities in areas where bottlenecks once posed greater constraints.

The impact has extended beyond corporate financing, Bian noted. As technology companies often face higher risks, weaker near-term profitability and greater uncertainty, their financing requires investors, intermediaries, and financial professionals with stronger technological and industrial expertise. The development of ChiNext has therefore also helped cultivate a more specialized ecosystem of institutions and talent capable of identifying and supporting innovative companies, laying a stronger foundation for future technology financing, Bian said.

As China steps up efforts to develop emerging industries, addressing companies' financing needs has also become an important part of the policy framework supporting innovation and industrial upgrading.

In April, the China Securities Regulatory Commission announced guidelines on deepening ChiNext reform to better serve the development of new quality productive forces and further strengthen the board's financing support for emerging industries.

The regulator set out a clearer and more inclusive positioning for ChiNext, calling on the board to better serve growth-oriented innovative and entrepreneurial companies, step up support for firms in new industries, new business models and new technologies, and facilitate listings by high-quality innovative companies that have yet to turn profitable. It also called for strengthening ChiNext's role in promoting the formation and concentration of innovation capital.

How financial services can better support companies throughout their development cycles and translate that support into tangible benefits for the real economy has long been a key policy focus in China, according to Bian. 

From recent market performance, ChiNext has also played an increasingly visible role in channeling capital toward technological innovation, Bian said. As technological innovation becomes a more important driver of economic growth, capital markets could play a larger role in bridging the gap between research breakthroughs, industrial application, and large-scale commercialization, he said.