Core Viewpoint - The article discusses the evolution of China's capital markets, emphasizing the importance of the "dual innovation" sector, which includes the ChiNext and Sci-Tech Innovation Board, as a key area for investment opportunities during a bull market [3][30]. Group 1: Historical Context - Before the stock market, enterprises were state-owned, and funding was solely reliant on government support [5][6]. - The transition to a shareholding system allowed companies to issue stocks for financing, leading to the establishment of stock exchanges in 1990 to regulate trading [8][15]. Group 2: Market Structure - The main board has high entry requirements, particularly regarding profitability, which excludes many potential growth stocks [19][20]. - The establishment of the SME Board in 2004 aimed to support medium-sized enterprises, but it did not significantly lower the entry barriers [23][25]. - The ChiNext was introduced in 2009 to better serve small and medium enterprises, while the Sci-Tech Innovation Board was launched in 2019 to support high-tech companies without the requirement of profitability [26][30]. Group 3: Characteristics of Dual Innovation Sector - The dual innovation sector exhibits three distinct characteristics: 1. High volatility, with a maximum price fluctuation limit of ±20%, compared to the main board's ±10% [34]. 2. High liquidity, as participants in this sector tend to have higher trading activity and capital [36]. 3. Greater imaginative potential, as tech innovation companies have unpredictable futures, leading to more significant valuation variations [38]. Group 4: Investment Opportunities - The unique characteristics of the dual innovation sector make it particularly suitable for quantitative investment strategies [41]. - In the current bull market, quantitative private equity focused on dual innovation has shown remarkable performance [43].