What arrangements have been made for the relevant business rules for the establishment of the science and technology innovation board's growth enterprise segment? Shanghai Stock Exchange responds.

The establishment of the Growth Enterprise Board on the STAR market is the focal point of this reform. What arrangements have been made regarding the related business rules? In response to this, the Shanghai Stock Exchange further deepened the reform of the STAR market and solicited opinions on supporting business rules. They emphasized, "We pay more attention to the innovation capability of enterprises in science and technology, allowing companies that meet the positioning of the STAR market and are not yet profitable or have accumulated unrecoverable losses to go public on the STAR market", which is one of the landmark reforms in setting up the STAR market and piloting a registration system. In the past six years, 54 non-profit-making enterprises have successfully listed on the STAR market, and they have continuously broken through technological research and development bottlenecks, expanded production scale, and accumulated development momentum under the reform. By 2024, these 54 enterprises had a total operating income of 174.79 billion yuan, with 26 of them exceeding 1 billion yuan in operating income. Remarkably, in the six years, 22 out of the 54 companies have achieved profitability after going public, successfully removing the label of "non-profit-making". In the six years, these 54 enterprises have invested a total of 163.925 billion yuan in research and development with funds raised from the capital market. Among the 20 biopharmaceutical companies listed according to the fifth set of listing standards, 19 have launched their core products. On the other hand, the technological innovation activities of enterprises have characteristics such as long research and development cycles, large continuous investments, and strong uncertainties. The investment risks of technology-based enterprises, especially non-profit-making ones, are higher than those of general enterprises. In order to further promote balanced development of investment and financing, the Shanghai Stock Exchange has implemented the requirements of the "Opinions on the STAR Market" by establishing the Growth Enterprise Board on the STAR market and establishing a supporting continuous supervision mechanism. While meeting the reasonable needs of science and technology enterprises for issuance and listing, targeted risk reminders and protection of investors' legitimate rights and interests are strengthened.