By September 22, deep-tech companies, referring to firms focused on ground-breaking high-tech development like AI and biotech, have replaced banks, non-bank financial institutions and real estate developers to become the backbone of China’s capital markets. Of the top-50 listed companies by market value in China’s A-share markets, 24 are high-tech firms. According to financial database Wind, 60 percent of the 70 IPOs completed in the Ashare markets by September 18 were for tech companies, and on the Hong Kong bourse, biotech, medical facilities and software services are the top-three sectors for IPOs. With a more inclusive market, high-tech startups, though unprofitable, can be listed. On August 28, China’s AI chip producer Cambricon briefly overtook liquor maker Kweichou Moutai as the top firm by stock price. Investors should still exercise caution over high-tech firms, especially when key technology breakthroughs are unlikely in the short term, experts said.
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