Of the first 25 companies listed on Shanghai’s Star board, 14 report state-owned investors among their top-three shareholders, reported the Financial Times.
The first 25 listings, which raised RMB 37 billion ($5.2 billion), shed light on the activities of the hundreds of state-run venture capital funds, also known as “guidance funds”, which have proliferated since 2015 and are intended to support Beijing’s goal of gaining prowess in key technology sectors by 2025.
The board, seen as part of China’s efforts to enhance its manufacturing of high-end components and reduce reliance on US companies, has attracted applications from 140 companies, which aim to raise up to $19 billion.
The listings have been well received by investors, particularly Chinese mutual funds. Shares in all of the first 25 companies to list are trading above their IPO price, while seven of them are trading at more than three times the debut price.