Core Viewpoint - The introduction of the senior professional institutional investor system for the fifth set of listing standards on the Sci-Tech Innovation Board is expected to foster a long-term investment environment and enhance the role of professional judgment among investment institutions [1][2]. Group 1: Introduction of Senior Professional Institutional Investor System - The Shanghai Stock Exchange has implemented guidelines for senior professional institutional investors, requiring them to hold at least 3% of shares or invest over 500 million yuan for at least 24 months before the IPO application [2][3]. - The aim is to encourage long-term capital to focus on early, small, and hard technology investments [2][3]. Group 2: Investment Trends and Characteristics - Analysis of 20 companies that successfully listed under the fifth set of standards reveals that most institutional investments occurred shortly before the IPO, indicating a need for a stronger culture of early and small investments [3][4]. - The trend of institutions entering during the IPO application phase reflects a significant opportunity for improvement in fostering a long-term investment mindset [3][4]. Group 3: Opportunities for Securities Firms - The new guidelines present opportunities for securities firms' private equity and alternative investment subsidiaries, particularly for leading firms with strong investment banking capabilities [4][5]. - Only three cases of securities firms participating as investors were noted among the 20 companies, highlighting a low engagement level [4][5]. Group 4: Collaboration with Venture Capital Institutions - Securities firms are encouraged to collaborate with leading venture capital institutions to leverage their expertise in identifying promising technology companies [8]. - Establishing information-sharing mechanisms with various market participants, including local guiding funds and industry funds, is essential for accurately targeting early-stage technology projects [8]. Group 5: Challenges and Considerations - The characteristics of industries under the fifth set of standards, such as long R&D cycles and high technical risks, challenge securities firms' research capabilities and risk tolerance [7]. - The success of securities firms in capitalizing on these changes depends on their internal collaboration, risk preferences, and overall capabilities [5][6].