Shanghai and Shenzhen Stock Exchanges Announce! Favorable policies for technology-based companies on the Main Board!

The Shanghai and Shenzhen main boards’ “light-asset, high R&D investment” recognition standards are finalized!

On March 27, the Shanghai and Shenzhen exchanges revised and released the implementation guidelines for stock issuance and listing review—light-asset, high R&D investment recognition standards (2026 revision) (abbreviated as the “Light-asset, High R&D Investment Guidelines”), expanding the scope of application of the “light-asset, high R&D investment” recognition standards to main-board companies. After the revisions, for main-board companies that meet the standards, follow-on financing and replenishing working capital can break through the limits to be used for R&D investment, further enhancing the flexibility of follow-on financing.

Officials with the Shanghai and Shenzhen exchanges said that going forward, they will closely focus on the key thrust of better serving scientific and technological innovation and the development of new-quality productive forces. They will support more listed companies that meet the “light-asset, high R&D investment” recognition standards to actively use this policy tool, promote the landing of typical cases, intensify efforts to concentrate factor resources into the areas of new-quality productive forces, further improve the flexibility and convenience of follow-on financing, and effectively enhance investors’ sense of gain from the market.

Recognition standards apply to Shanghai and Shenzhen main boards

The “14th Five-Year Plan” for 2021–2025 and beyond clearly states that it is necessary to “continue to deepen the comprehensive reform of capital-market financing and investment, and enhance the inclusiveness and adaptability of capital-market systems.” This year’s government work report further emphasizes that for technology-based enterprises in key core technology areas, the “green channel” mechanism for regular implementation of equity financing and M&A restructuring shall be carried out. At the 2026 system work meeting, the CSRC proposed to improve the convenience and flexibility of follow-on financing.

Against this backdrop, the Shanghai and Shenzhen exchanges revised and released the “Light-asset, High R&D Investment Guidelines.” Building on prior pilots in the STAR Market and the ChiNext board, it added recognition standards for the STAR Market’s “light-asset, high R&D investment” in the main-board market.

Specifically, for main-board listed companies, the “light-asset” recognition standard is that the proportion of tangible assets to total assets is no more than 20%; the “high R&D investment” recognition standard is that the average R&D investment over the most recent three years as a proportion of operating revenue is no less than 15%, or that the cumulative R&D investment over the most recent three years is no less than RMB 300 million and the average R&D investment over the most recent three years as a proportion of operating revenue is no less than 5%.

In recent years, main-board companies have proactively kept pace with frontier technology R&D, and the industries have continued to transform and upgrade. Judging from the industry distribution of current main-board listed companies, they also involve strategic emerging industries such as next-generation information technology, high-end equipment manufacturing, biopharmaceuticals, and new materials. A group of listed companies with core technology capabilities has already formed. Such companies have characteristics including a low proportion of fixed assets, a relatively high proportion of intangible assets, continuous investment in R&D expenses, and R&D expenses accounting for a proportion of operating revenue significantly higher than the industry average. Their business development, transformation and upgrading, and sustained technological iteration and product innovation are closely related to each other, and they need long-term, large-scale, stable funding support to meet R&D needs.

The revision of the “Light-asset, High R&D Investment Guidelines,” which expands the scope of application of the “light-asset, high R&D investment” recognition standards to main-board companies, and responds to market calls in a proactive and timely manner, is exactly a key measure to enhance the inclusiveness and adaptability of the follow-on financing system.

Insiders said that issuing main-board standards based on the actual situation of the main-board companies’ diversified types, relaxing limits on the proportion of funds raised for replenishing working capital, and allowing the portion exceeding the proportion limit to be specifically used for R&D related to the principal business all help improve the targeted and practical effectiveness of the use of raised funds. This better serves main-board technology-based enterprises and helps coordinate the transformation and upgrading of traditional industries with the cultivation of new-quality productive forces.

The “two-innovation boards” further highlight a “support for the strong and support for science” orientation

The recognition standards for “light-asset, high R&D investment” have already been piloted on the STAR Market and the ChiNext board in stages. On October 11, 2024, the SSE issued the “Guidelines No. 6 for the Application of the Listing and Issuance Review Rules of the Shanghai Stock Exchange—Recognition Standards for Light-asset and High R&D Investment (Trial),” establishing the “light-asset, high R&D investment” recognition standards on the STAR Market first. It allows the portion of follow-on financing used to supplement liquidity beyond 30% to be used for R&D investment related to the principal business.

As of now, a total of 14 STAR Market companies have adopted this standard to implement follow-on financing, with a total planned financing amount of RMB 35.12 billion. As a proportion of the number of STAR Market companies accepted for review in 2025 and the planned financing amount, the figures are 37% and 76%, respectively. The standard covers companies across various listing standards and major industries applicable to the STAR Market. Among them, two companies from the ChiNext Growth Layer plan to raise RMB 5.78 billion. As of now, 12 companies have been registered and become effective. The “light-asset, high R&D investment” standard has become an important way for STAR Market listed companies to conduct follow-on financing, strongly supporting technology companies to increase R&D investment and promoting the development of scientific and technological innovation and new-quality productive forces.

In this revision, the relevant recognition standards for the STAR Market remain unchanged. The “light-asset” recognition standard is the same as that for the main board and the ChiNext board. However, the “high R&D investment” recognition standard is “the average R&D investment over the most recent three years as a proportion of operating revenue is no less than 15% or the cumulative R&D investment over the most recent three years is no less than RMB 300 million” and “the proportion of R&D personnel over the most recent year to the total number of employees for that year is no less than 10%.”

In June 2025, the ChiNext board’s recognition standards for “light-asset, high R&D investment” were released and implemented for follow-on financing. Already, ChiNext listed companies such as Jiangbo Long have chosen to apply for follow-on financing using the “light-asset, high R&D investment” standard, and the market response has been positive. In this revision, the SZSE made an adaptive adjustment to the previously issued ChiNext board “high R&D investment” recognition standards. In the “high R&D investment” recognition standards, the lower limit for the proportion of R&D investment in “cumulative R&D investment over the most recent three years is no less than RMB 300 million and the average R&D investment over the most recent three years as a proportion of operating revenue is no less than 3%” was adjusted from 3% to 5%.

The SZSE said that by appropriately raising the values of the “high R&D investment” recognition indicators, the goal is to guide listed companies to increase R&D investment for scientific and technological innovation. It aims to anchor on listed companies that focus deeply on R&D and have innovation characteristics, and with efficient and flexible follow-on financing mechanisms, help them steadily increase their innovation vitality and ensure good governance for a virtuous cycle of innovative development.

(Editor: Wang Zhiqiang HF013)

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