On February 20th, a front page article in the Securities Times stated that the capital market’s preference for technology is rooted in the systematic improvement of China’s technological innovation capabilities. However, we should also note that there are objective laws governing industrial development, and investing in technology stocks is not a game of passing the buck, let alone falling into the trap of short-term speculation. Only by focusing on industrial logic, deeply cultivating the fundamentals of the company, guiding the flow of funds to hard technology enterprises that truly possess core competitiveness, and achieving a more positive interaction between the capital market and technological innovation, can we achieve a two-way rush between technological innovation and capital returns. To achieve a positive interaction between the capital market and technological innovation, investors need to distinguish truth from falsehood and anchor the industrial logic. Investors need to be wary of companies’ “riding on hot spots” and screen out targets with high technology conversion efficiency and verifiable market space through penetrating analysis of the upstream and downstream of the industrial chain. To achieve a positive interaction between the capital market and technological innovation, investors also need to root themselves in fundamentals and cultivate long-term value. Technology investment needs to be judged with an industrial perspective, focusing on whether the enterprise has sustainable capabilities for technological iteration, cost control, and market expansion.
Scan code to share