Shanghai’s Star Market hits US$2.3 trillion capitalisation to fund tech self-reliance
Seven years after its launch, the Shanghai bourse’s tech-focused board has accumulated US$2.3 trillion in market value, providing critical domestic capital for semiconductor and artificial intelligence firms facing US export restrictions.
The Sci-Tech Innovation Board, commonly known as the Star Market, has reached a combined market capitalisation of 15.5 trillion yuan, or roughly US$2.3 trillion. Operating under the Shanghai Stock Exchange, the seven-year-old platform now forms a substantial component of China’s broader US$16 trillion equity landscape.
This valuation underscores the board's central role in Beijing’s strategy for technological self-reliance and domestic substitution. The exchange was explicitly designed to channel investment into frontier sectors like artificial intelligence, robotics and semiconductors. By doing so, it aims to help local manufacturers reduce their reliance on advanced foreign technologies that Washington is actively working to restrict.
President Xi Jinping first proposed the tech-focused board in 2018 as a mechanism to leverage the capital market for national innovation goals. The initiative moved rapidly from concept to execution. Trading commenced just seven and a half months later on July 22, 2019, when an initial batch of 25 companies made their debuts.
That inaugural list included early participants such as Suzhou HYC Technology and Raytron Technology. Today, the roster of listed entities has expanded to include some of the country's most critical hardware manufacturers. Semiconductor Manufacturing International Corporation, the nation’s largest chipmaker, trades on the board alongside Nvidia challengers Cambricon Technologies and Moore Threads Technology.
Beyond funding specific strategic industries, the exchange represents a structural shift in how China’s equity markets operate. Historically, rigid regulations and a failure to accommodate high-growth businesses drew heavy criticism from market watchers. These constraints often resulted in an exodus of new-economy companies seeking overseas listings instead of staying onshore.
The Star Market was established to correct this dynamic and retain domestic innovation capital through deepening reforms. “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,” said Hao Danyang, an analyst at Shenwan Hongyuan Group.
By keeping these technology companies on domestic exchanges, the board provides a vital financial engine for the country's long-term economic transition. It ensures that public capital is directed toward the hard technology sectors that policymakers view as essential for future industrial development.
