A majority of China's A-share listed firms have allocated more funding to R&D investment since 2019, to be in lockstep with the nation's 14th Five-Year Plan (2021-25) which prioritizes on home-technology innovation.
In 2019, the R&D investment from China's A-share listed firms totaled 759.78 billion yuan ($116.74 billion), a year-on-year increase of 21.52 percent, the Securities Daily reported on Saturday.
As of March 12, 2021, Among the A-share listed firms that have made public their 2020 financial reports, a total of 153 firms have invested 27.22 billion yuan ($4.18 billion) in R&D since 2020, a year-on-year increase of 19.46 percent.
Among the 153 firms, a total of 51 firms spent more than 100 million yuan ($15.36 million) on their R&D, and 5 firms spent more than 1 billion yuan ($0.15 billion) on R&D. A total of 18 firms invested more than 10 percent of their yearly operating income on R&D.
Aligning with the 14th Five-Year Plan, which prioritizes tech innovation, Premier Li Keqiang said in China's 2021 government work report that market-based mechanisms should be used to encourage businesses to innovate.
According to the 2021 central government work report, the 75 percent tax deduction policy for corporate R&D spending will remain unchanged, and the percentage of deductions for manufacturing companies will be increased to 100 percent. Tax incentives can be used to encourage businesses to increase their investment in R&D and develop innovatively.