Guo Ji Jin Rong Bao·2025-06-20 08:29Core Viewpoint - The recent announcement by the China Securities Regulatory Commission (CSRC) regarding the establishment of a "Growth Layer" in the Sci-Tech Innovation Board (STAR Market) is a significant reform aimed at enhancing the inclusivity and adaptability of the listing system for high-tech companies, particularly those in emerging fields like artificial intelligence and commercial aerospace [1][3]. Summary by Relevant Sections Introduction of the Growth Layer - The Growth Layer will apply the fifth set of listing standards, allowing unprofitable companies to go public, thereby addressing the financing challenges faced by high R&D investment firms [3][4]. - The establishment of this layer is seen as a timely response to the challenges posed by external pressures on China's high-tech sector, particularly from Western countries [3]. Achievements and Challenges of the STAR Market - Over the past six years, 54 unprofitable companies have successfully listed on the STAR Market, generating a total revenue of 174.48 billion yuan, with 26 companies exceeding 1 billion yuan in revenue [4]. - Among these, 22 companies have achieved profitability post-listing, indicating a long-term growth trajectory despite high R&D expenditures totaling 163.93 billion yuan [4]. Regulatory Innovations - The Growth Layer introduces innovative regulatory measures, including a shortened review process and a pilot IPO pre-review mechanism, to accommodate companies at different development stages [4]. - Clear standards for inclusion and exclusion from the Growth Layer have been established, along with operational procedures to ensure minimal impact on existing listed companies [4]. Risk Management Considerations - The regulatory framework emphasizes risk awareness, requiring investors in new Growth Layer companies to sign a specialized risk disclosure agreement [5]. - Companies are mandated to disclose their unprofitability and associated risks in regular and interim reports, with increased accountability for intermediary institutions [5]. Potential Challenges Ahead - The Growth Layer may face challenges such as difficulties in valuing unprofitable companies, high delisting risks, and potentially insufficient trading activity [5]. - Maintaining a balance between the interests of unprofitable companies and investors will require stringent information disclosure and appropriate accountability mechanisms [5].