The surge in China's hard-tech assets in the A-share market reflects the accelerating transformation of the national innovation-driven development strategy and industrial upgrading into clear market consensus. This is not merely capital chasing individual companies but also demonstrates market confidence in China's independent innovation capabilities and long-term growth potential in hard-tech sectors. It further signifies that capital is reassessing the strategic importance of core technologies in the future economic landscape with a forward-looking perspective.
In my view, the rising popularity of China's hard-tech assets in the A-share market stems from three core drivers:
First, it aligns with national strategic priorities and policy direction. Leading tech enterprises, backed by iterative innovation in core technologies and strategic resource allocation, exhibit growth resilience that transcends economic cycles. Against the backdrop of intensifying global tech competition, breakthroughs in hard-tech have evolved beyond pure technological advancement to become a strategic imperative for securing industrial chain safety and development autonomy. The 20th National Congress report explicitly emphasized "accelerating high-level self-reliance in science and technology" and called for "original and pioneering technological breakthroughs guided by national strategic needs." During the 14th Five-Year Plan period, China has focused on strategic emerging industries like next-generation IT, new energy, and advanced materials, fostering deeper integration of innovation, industrial, and capital chains to systematically build a national strategic sci-tech strength system.
As key players in this system, leading tech firms convert institutional advantages into sustainable innovation and competitiveness through continuous technological iteration and industrial breakthroughs. This not only drives cluster development in emerging industries but also tightly binds corporate growth trajectories with long-term national strategic goals, creating endogenous resilience beyond traditional industry cycles.
Second, the capital market ecosystem has matured, with institutional innovation dividends being released and improved value discovery mechanisms enabling rational pricing of high-quality tech assets. In recent years, comprehensive reforms in the capital market have deepened, with the STAR Market's "1+6" reform measures accelerating implementation. These provide more inclusive financing channels for hard-tech companies characterized by high R&D investment and long payback periods, while strengthening support for cutting-edge technologies. Against this backdrop, institutional investors like insurers and mutual funds have increased medium-to-long-term capital inflows, enhancing market pricing efficiency and enabling more precise allocation to hard-tech assets with core competitiveness—thereby facilitating high-level circulation among technology, capital, and industry.
Third, the valuation logic for tech assets has been reconstructed, with greater emphasis on strategic growth value, prompting capital to lock in core tech assets early. The fundamental reason behind the A-share market's enthusiasm for Chinese hard-tech assets lies in the structural reshaping of tech asset valuation frameworks, where capital is systematically reappraising long-term technological barriers and strategic growth potential. This recalibration doesn't disregard corporate fundamentals but shifts pricing anchors from "past profitability" to "future technological leadership." It reflects both capital's forward-looking nature and the capital market's pivotal role in optimizing innovation resource allocation.
As comprehensive reforms in market-based financing and investment advance, we anticipate further optimization of market mechanisms to channel more funds precisely toward hard-tech enterprises with core technologies and independent innovation capabilities. This will enable more investors to share corporate growth dividends through long-term value investing, continuously strengthening the endogenous drivers for high-quality development in capital markets.
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