Value of Chinese tech stocks surpasses financials, real estate

Technology-related stocks now account for over one-fourth of the total market capitalization of the A-share market, far surpassing the combined weight of the financial and real estate sectors, the China Securities Regulatory Commission said on Monday.

This is part of the achievements made by the country's capital market in the 14th Five-Year Plan period (2021-25), Wu Qing, chairman of the CSRC, said, reflecting that the capital market is shifting into higher gear in support of innovation-driven development.

Listed companies have also shown stronger awareness of serving investors, Wu said at a news conference on Monday. The value of dividends and share buybacks reached 10.6 trillion yuan ($1.49 trillion) in the five-year period, more than twice the combined proceeds from IPOs and refinancing, rising by more than 80 percent compared with the 13th Five-Year Plan period (2016-2020).

Over the past five years, equity and bond financing on the exchange markets totaled 57.5 trillion yuan. The share of direct financing in the country's total financing has steadily risen — up 2.8 percentage points from the end of the 13th Five-Year Plan period to 31.6 percent.

Meanwhile, China has continued to expand its financial sector's opening-up.

According to Wu, regulators have approved 13 foreign-controlled securities, fund and futures institutions to enter the domestic market during the 14th Five-Year Plan period. Foreign investors now hold about 3.4 trillion yuan of A shares, while 269 Chinese companies are listed overseas.