“Science and technology are the primary productive forces” is present process a profound worth reassessment in China’s capital markets. On July 8, as the National Science and Technology Awards Conference, the joint meeting of the Chinese Academy of Sciences and Chinese Academy of Engineering, and the eleventh National Congress of the China Association for Science and Technology convened in Beijing, prime management elevated the strategic positioning of technological innovation. On the identical day, China’s A-share market delivered a milestone: the mixed market capitalization of the STAR Market and ChiNext Board exceeded 30% of whole A-share market cap for the primary time. Meanwhile, home reminiscence chip chief ChangXin Memory Technologies introduced it might open IPO subscriptions on July 16, including substantial weight to this tech worth reassessment.
From strategic coverage alerts to market-driven worth discovery, a transparent thesis is being validated: know-how funding is changing into the true worth investing of this period.
Policy Framework: From “Participant” to “Leader”
According to the China Times, President Xi Jinping emphasised on the nationwide science and know-how convention that “the new round of technological revolution and industrial transformation is profoundly changing human production, lifestyles, and the global development landscape,” and that China is “accelerating its transformation from a global technology participant and contributor to a pioneer and leader, becoming one of the fastest-rising countries in innovation capability.”
This leap from “participant” to “leader” means capital market pricing logic have to be reconstructed accordingly. The China Times famous that the fifteenth Five-Year Plan interval is a crucial part for constructing China right into a science and know-how powerhouse. President Xi outlined a sequence of necessities: strengthening systematic analysis capabilities in technological innovation and enhancing the general effectiveness of the nationwide innovation system; selling deep integration of technological innovation and industrial innovation, and clearing pathways for accelerating the transformation of know-how into actual productive forces; optimizing collaborative schooling mechanisms linking science and schooling, and vigorously cultivating excellent younger scientific expertise; bettering the effectivity of science and know-how funding, attaining unity between elevated funding scale and enhanced effectiveness; deepening reform of science and know-how analysis, and utilizing analysis as an efficient information; and strengthening know-how ethics and security governance to make sure know-how progresses for good, stays protected and controllable, and advantages the folks.
An editorial from Yicai analyzed the scenario from one other dimension. It famous that the present new spherical of technological revolution and industrial transformation is profoundly reshaping human manufacturing, life, and the worldwide growth panorama, with the burgeoning AI know-how revolution quickly accelerating the tempo at which know-how adjustments lives and the world, ushering in an period of “instant transformation.”
The AI-era know-how revolution reveals three distinctive traits: first, iterative innovation makes earlier imitation-based innovation more and more uneconomical, leaving latecomers with ever-narrower area; second, the trail from theoretical analysis to sensible utility now options sometimes low latency, with technological and industrial innovation already deeply built-in; third, the boundaries between innovation entities are more and more blurred, with enterprises changing into the first pressure in innovation and the market changing into the principle battlefield.
ChangXin Memory Technologies: A Textbook Case of Hard Tech Value Realization
The itemizing of ChangXin Memory Technologies has grow to be probably the most emblematic occasion on this worth reassessment.
This Chinese DRAM (Dynamic Random Access Memory) large posted losses for 3 consecutive years from 2022 to 2024, with cumulative losses exceeding 30 billion yuan (roughly $4.4 billion). However, in Q1 2026, the corporate achieved income of 50.8 billion yuan (roughly $7.5 billion) and web revenue attributable to shareholders of 24.76 billion yuan (roughly $3.7 billion). For the primary half of 2026, it initiatives income of 110 billion to 120 billion yuan (roughly $17.7 billion) and web revenue of 50 billion to 57 billion yuan (roughly $8.4 billion).
From cumulative losses exceeding 30 billion yuan to a single-quarter revenue approaching 25 billion yuan, this dramatic reversal completely illustrates the distinctive worth logic of know-how funding: early huge losses will not be business failure however reasonably the “valley of death” that have to be crossed in technological breakthroughs. When technological breakthroughs, manufacturing capability launch, and market demand type a resonance, worth realization explodes inside only one or two years.
This non-linear worth launch attribute is exactly the blind spot that conventional worth investing frameworks can not cowl. In the previous, worth resided within the moats of client manufacturers and the steadiness sheets of monetary giants; at the moment, larger worth exists in laboratory breakthroughs, in manufacturing line yield enhancements, and in technological leaps that overcome crucial bottlenecks.
ChangXin is just not an remoted case. Data exhibits that as of July 7, 2026, the STAR Market had 610 listed corporations with a complete market capitalization of 15.68 trillion yuan, whereas the ChiNext Board had 1,399 listed corporations with a complete market cap of 20.58 trillion yuan. The mixed market cap of these two boards now exceeds 30% of whole A-share market capitalization, in comparison with below 12% in 2019. The A-share market now has over 200 corporations with market caps exceeding 100 billion yuan, with newcomers primarily from semiconductors, new vitality, telecommunications gear, and different high-tech sectors.
The China Times evaluation argues that in a rustic accelerating its transformation from “technology participant” to “technology leader,” and in an period the place “high-level technological self-reliance” has been elevated to a core nationwide technique, the intrinsic worth of laborious tech property ought to be mirrored within the strategic weight of nationwide industrial safety and international competitiveness.
Clearing the Conversion Pathway: The Core Challenge of Tech System Reform
While acknowledging achievements, the channel for reworking know-how into actual productive forces stays a core problem.
The Yicai editorial identified that market-oriented and application-oriented innovation has lengthy been a big ache level in China’s leapfrog growth of science and know-how. For a very long time, there was a compatibility challenge between the engineering feasibility of home technological innovation and its financial viability inside the market system, resulting in various levels of obstacles in successfully reworking quite a few improvements from analysis establishments into actual productive forces.
The editorial additional analyzed that the efficient integration of technological innovation and industrial innovation seems on the floor to be a matter of know-how switch, however is actually a query of the evolutionary pathway of innovation actions. If innovation is seen one-dimensionally as a technological analysis exercise, it simply faces a one-dimensional analysis mechanism targeted on technical goal accessibility, which may result in analysis initiatives pursued in any respect prices that lack a tough metric of financial viability below market mechanisms in the case of reworking know-how into productive forces.
To this finish, Yicai recommends additional comprehensively deepening science and know-how system reform, adjusting and bettering the data construction, organizational construction, and communication mechanisms of China’s know-how ecosystem consistent with the traits of the AI period. It have to be clearly understood that utility orientation is actually market orientation, the place decentralized market decision-making successfully integrates and matches scattered data based mostly on provide and demand preferences, permitting functions to be found and outlined, thereby changing into the information for technological innovation.
At the identical time, industry-oriented pathways for analysis sources must be explored. In the brief time period, this entails strengthening the nationwide know-how switch system and selling industry-academia-research integration; within the medium to long run, it requires advancing the industrialization structure and market orientation of analysis sources, step by step implementing zero-based budgeting trials within the science and know-how innovation sector, experimenting with establishing authorities procurement markets in analysis, and allocating nationwide analysis sources based mostly on supply outcomes reasonably than seniority.
Tech Investing: A Marathon, Not a Sprint
The fifteenth Five-Year Plan interval is a crucial part for constructing China right into a science and know-how powerhouse and a key window for reassessing the worth of know-how property.
The China Times famous that the spirit of the science and know-how convention has drawn clear coordinates for the reassessment of know-how asset values. “The new round of technological revolution and industrial transformation” means coverage certainty for brand new tracks has been elevated to the best degree, with associated industrial chains set to obtain sustained and ample useful resource allocation—these sectors are not short-term speculative themes however possess the foundational worth for long-term monitoring and allocation. “Promoting deep integration of technological innovation and industrial innovation” requires the involvement of “patient capital”; laborious tech is a long-term funding, and solely long-duration capital can bear the dangers within the early phases of innovation and {industry}, reaping larger returns over longer time horizons.
True know-how investing is worth discovery constructed on a deep understanding of {industry} developments, not chasing short-term hotspots.
However, traders should additionally soberly acknowledge that prime volatility is inherent to know-how’s DNA, demanding stronger skilled data and longer holding persistence. Reassessment doesn’t imply a one-way rally, a lot much less short-term realization. Technology roadmaps carry iteration dangers, commercialization tempo varies, and international provide chains expertise reversals.
As the China Times said, true worth investing lies in figuring out long-term winners succesful of weathering cycles via the triple resonance of {industry} developments, coverage resolve, and intrinsic company know-how—and ready with adequate time and persistence for his or her worth to be absolutely acknowledged by the market. The worth reassessment of know-how is a marathon, not a hundred-meter dash.