In the first half of the year 2024, companies listed on Chinese stock exchanges have exhibited a continual increase in their investment towards scientific and technological research and development, as highlighted in their recent semi-annual reports. The data reveals that the total allocation for research and development by these companies reached 750 billion yuan (approximately 105.57 billion U.S. dollars), marking a year-on-year increase of 0.97 percent. This consistent growth has been maintained for several consecutive years.
The overall research and development intensity across listed companies was recorded at 2.14 percent, reflecting an increase of 0.05 percentage points compared to the previous year. Specifically, companies listed on the ChiNext, Science and Technology Innovation Board, and Beijing Stock Exchange demonstrated significantly higher research and development intensities of 5.02 percent, 11.26 percent, and 4.87 percent, respectively.
Particularly noteworthy are the strategic emerging industries, high-tech manufacturing sectors, and industries such as computers, electronics, and mechanical equipment, all of which have shown robust innovation capabilities, with research and development intensities surpassing 5 percent.
Yang Chao, the Chief Strategy Analyst at China Galaxy Securities, remarked that “Technological capabilities are fundamental to a company’s competitiveness. By increasing research and development expenditures and reallocating resources towards research initiatives, firms can drive their technological innovation. This, in turn, enhances product quality, broadens market share, and ultimately strengthens competitive positioning. Many industries are actively seeking to integrate advanced technologies, such as artificial intelligence, into their operations, improving production efficiency through these innovations as a critical means of enterprise transformation and upgrading.”
In conclusion, the data underscores the steadfast commitment of listed companies in China to invest in scientific and technological advancements, emphasizing the essential role of innovation in bolstering competitiveness and responding to market demands. This trend not only contributes to the advancement of individual companies but also stimulates broader economic growth and development across industries.
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