China’s tech-driven STAR Market is defying expectations and proving its mettle in a challenging global economy. While some markets struggle, this Nasdaq-style exchange is buzzing with innovation and growth. Firms listed on the Science and Technology Innovation Board (STAR Market) are showcasing remarkable resilience, fueled by a relentless focus on hard technology. Think cutting-edge fields like integrated circuits, artificial intelligence, and biomedicine – these are the sectors driving a 7.9% year-on-year revenue surge, reaching a staggering 1.11 trillion yuan (approximately $156.02 billion) in the first three quarters of 2025.
But here’s where it gets even more impressive: net profits soared by 8.9% to 49.27 billion yuan during the same period. And the third quarter saw a jaw-dropping 75% year-on-year jump in net profit, a testament to the market’s accelerating momentum.
This growth isn’t confined to a select few. Over 70% of STAR Market companies reported revenue increases, with nearly 60% seeing their bottom lines expand. 158 companies witnessed net profit surges exceeding 50%, and a remarkable 46 turned losses into profits.
The secret sauce? A potent combination of government support, robust R&D investment, and a thriving hard tech ecosystem. The integrated circuit industry, for instance, saw a 25% revenue jump and a staggering 67% net profit increase. Chip design companies, riding the wave of downstream demand, experienced a 141% net profit surge, with 80% reporting revenue growth.
This focus on innovation is backed by serious investment. STAR Market companies poured 119.75 billion yuan into R&D, a staggering 2.4 times their net profit. This translates to a median R&D intensity of 12.4%, significantly higher than other sectors of the A-share market.
And this is the part most people miss: China’s regulators are actively fostering this growth. The China Securities Regulatory Commission (CSRC) established a dedicated sci-tech growth tier in June 2025, specifically designed to nurture high-potential tech companies that may not yet be profitable. Since then, the STAR Market has implemented reforms like introducing senior professional institutional investors and pre-review mechanisms, further streamlining the listing process.
Industry experts are bullish on the STAR Market’s future. With continued policy support and the unleashing of companies’ internal growth engines, the market is poised to become a breeding ground for world-leading hard technology enterprises. This, in turn, will propel China’s ambitious goal of achieving high-level technological self-reliance.
But is this growth sustainable? Can the STAR Market maintain its momentum in the face of global economic headwinds and intensifying technological competition? Only time will tell. What’s undeniable is that China’s STAR Market is a fascinating experiment in fostering innovation and a powerful indicator of the country’s technological aspirations. What do you think? Is the STAR Market a model for other countries to follow, or are there inherent risks to this rapid growth? Let’s discuss in the comments below.