Shenzhen has witnessed a surge in young companies going public, with 121 firms listing within a decade of their founding. This phenomenon is attributed to the city's innovation-driven ecosystem, supportive policies, and robust financial backing.
Last week (December 1–5), seven Shenzhen-based tech firms filed for Hong Kong IPOs, including robotics company Le Dong, semiconductor firm Xihua Technology, and power device maker Basic Semiconductor—all under 10 years old. Even Transsion Holdings (688036.SH), dubbed the "King of Africa," was only 12 years old when it pursued a dual listing (it was six when it debuted on the A-share market).
Official data shows Shenzhen has produced 87 A-share and 34 Hong Kong-listed companies that went public before their 10th anniversary. Notable names include BYD (002594.SZ, 01211.HK), Han's Laser (002008.SZ), Insta360 (688775.SH), Orbbec (688322.SH), and DOBOT (02432.HK).
**Innovation-Driven Growth** Most of these firms are leaders in niche sectors, with some becoming industry pioneers. BYD, listed at seven years old, is now China's top automaker by market cap. Han's Laser broke foreign dominance in laser equipment, while Insta360 leads in panoramic and action cameras. Orbbec and DOBOT are trailblazers in 3D vision and collaborative robotics, respectively.
These firms predominantly emerge from Shenzhen's "20+8" industrial clusters (20 strategic emerging industries and eight future sectors). The city's focus on corporate-led innovation has cultivated a vast pool of high-tech enterprises. By 2024, Shenzhen housed over 25,000 national high-tech firms—the highest density nationwide—along with 1,025 "little giant" specialized SMEs and 95 national manufacturing champions.
**Supply Chain Advantage** Shenzhen's mature supply chain network, dubbed the "one-hour industrial circle," enables rapid prototyping and production. Insta360 relocated from Nanjing in 2016 to leverage this ecosystem, cutting procurement and production cycles significantly. Similarly, DOBOT founder Liu Peichao chose Shenzhen for its efficient supply chain, where samples could be produced within hours instead of weeks.
**Policy Support** Shenzhen's government has long fostered a pro-IPO environment. Initiatives like the 2004 SME Listing Cultivation Program and the 2023 "Star Shining Shenzhen" one-stop service platform have streamlined listings. The city now hosts about 590 listed firms, ranking among China's top three.
Tech startups benefit from tailored financial tools like "Tech Startup Pass" loans and the "Soaring Loan" for growth-stage firms. Shenzhen also pioneered intellectual property securitization and data-asset financing to unlock capital for innovators.
**Capital Boost** As a financial hub, Shenzhen's private equity and venture capital sectors manage over CNY1.5 trillion, backing 14,000 firms—70% being SMEs. The monthly "Shenzhen Venture Capital Day" has attracted 7,000 global investors since 2022, facilitating deals worth nearly CNY200 billion.
The 2025–2026 action plan aims for a CNY1 trillion "20+8" industrial fund cluster and 10,000 registered PE/VC funds by 2026. State-backed "bold capital" and "patient capital" have also played a role, with government funds catalyzing nearly 600 listings via CNY500 billion in leveraged investments.
Shenzhen's capital markets now lead in serving tech innovators, with over 80% of local IPOs landing on the STAR and ChiNext boards. The 121 sub-10-year-old listings exemplify the city's success in linking technology, industry, and finance.
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