CHONGQING M&E (02722) Surges Over 4% as Chongqing Plans SOE Tech Innovation Moves, Backs Company in Building High-Level R&D Platforms

Stock News01-21

CHONGQING M&E (02722) rose over 4%. At the time of writing, the stock was up 4% to HK$2.34, with a turnover of HK$8.3565 million.

On the news front, the State-owned Assets Supervision and Administration Commission (SASAC) of Chongqing recently issued the "Work Plan for Further Enhancing the Scientific and Technological Innovation Capabilities of Municipal State-Owned Enterprises," which systematically deploys seven specialized tasks and iteratively upgrades innovation measures for these enterprises.

The plan specifies that by 2026, the growth rate of R&D expenditure for Chongqing's municipal SOEs will reach over 8%. It aims to achieve breakthroughs in more than 30 key core technologies in priority areas such as intelligent connected new energy vehicles and industrial machinery.

Furthermore, it seeks to increase the proportion of output value from strategic emerging industries within the total industrial output value of municipal state-owned industrial enterprises to over 35%.

Concurrently, it will progressively implement over 100 integrated projects and approximately 70 digitalization and "AI+" application scenarios to strengthen the supportive role of technological innovation in industrial upgrading.

The plan outlines key initiatives across seven areas, one of which is enhancing the capacity of a group of differentiated and specialized innovation platform entities.

It will support companies, including CHONGQING M&E Group, in constructing high-level innovation platforms, promote the inclusion of more platforms into national and municipal "white lists" for innovation platforms, and encourage municipal SOEs to form innovation consortia with universities and research institutes.

By the end of 2026, the goal is to add three new "white list" platforms, establish three new industrial innovation complexes, achieve a "zero breakthrough" in national high-level innovation platforms, and ensure the growth rate of full-caliber R&D investment is no less than 8%.

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