In recent years, China’s continued R&D investment in the field of science and technology has brought significant achievements. It is gradually moving from the low to the high end of the global industrial division of labor. According to data from CB Insights, China has 62 'unicorn' companies. Has become the world's second largest 'unicorn' enterprise gathering place, surpassing Britain (13), India (10), Germany (4), second only to the United States (113). Among the world's top 500 companies, China grew from 69 in 2011 to 115 in 2017. It has also become the world's second largest gathering of Fortune 500 companies. Leading companies in China’s new economy have become the world’s top 500 major newcomers.
However, the current R&D investment still has division of results in different industries, and the capital market is therefore biased. After 2013, China's tertiary industry has officially become the first driving force for economic growth. The strong growth momentum of the tertiary industry has effectively stimulated electronics. Downstream demand from industries such as commerce and the Internet, the efficiency advantages of new technologies have drastically promoted industrial subversion and change, and robust new consumer demand has effectively covered R&D investment in these industries.
At the same time, the downstream relatively solidified manufacturing industry has entered the stage of self-evolution and pseudo-preservation. The low-end manufacturing industry has begun to shift to advanced manufacturing, and R&D investment has greatly expanded. However, the relatively large current R&D investment in advanced manufacturing industry is difficult to be driven by downstream demand and profits in the short term. As covered, many leading companies in the subdivided sectors have shown themselves to be outdated during the current period, and therefore the capital market tends to be biased against its valuation.
The government’s support for advanced manufacturing companies has been continuously strengthened, effectively covering and transitioning to difficult times for enterprises. From the perspective of investment, the future of these industries may be underestimated. In recent years, software tax rebates, photovoltaic subsidies, and new Energy vehicles are subsidized into integrated circuit industry funds, etc. Financial transfer payments and subsidies form an effective support for the company’s industrial environment, brand influence, and global competitiveness. For example, PV and new energy vehicle industry chain companies have received financial support. Businesses have become the 'unicorns' of today's world-renowned technology and pricing power, and industries such as software and integrated circuits are also accelerating the biggest and most difficult stages of development. It is believed that these fields will soon Welcome to the profit and investment harvest.