Many listed companies in China significantly increased research and development spending in the first half of the year, providing strong internal momentum for high-quality development.
A company listed on the Shenzhen-based ChiNext board is developing new optical communication devices to meet strong demand from the artificial intelligence (AI) sector. Its interim report shows that sales rose 62 percent year-over-year, with net profit up 118 percent. Meanwhile, research and development investment accounted for nearly 40 percent of its net profit.
"This device long relied on imports and was a bottleneck in our industry. After years of effort, we can now arrange hundreds of optical fibers on a flexible board thinner than a strand of hair, and have achieved mass production and sales," said Hou Dan, the technical director of TS Communications Co., Ltd. in south China's tech hub Shenzhen.
More technology firms are now focusing research and development on overcoming technical bottlenecks. A listed company channeled newly raised funds into automated production, achieving a 34.47 percent year-on-year revenue increase.
"This is a new production line built after listing. Our products have now entered the European market, with North America being the next goal," said Wang Rong, chairman of Kerun Intelligent Control Co., Ltd., in Quzhou, a city in east China's Zhejiang Province.
In the first half of 2025, total research and development spending in the A-share market exceeded 810 billion yuan (approximately 112 billion U.S. dollars), up 3.27 percent year-over-year, with growth accelerating by nearly 2 percentage points. Listed companies have become a major force in sci-tech innovation.
"Investment in research and development has become a key factor for listed companies to enhance core competitiveness. At the policy level, the national innovation-driven development strategy provides support and tax incentives. At the capital market level, market valuations of tech firms further motivate companies to increase innovation input," said Tian Lihui, head of the Institute of Financial Development in Tianjin's Nankai University.
More research spending by listed firms fuels high-quality development
