621 A-share Companies Release Stock Incentive Plans in 2022 for over 21% YoY Rise

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An increasing number of A-share companies in China are making use of share incentive plans to retain and motivate key research personnel.

Figures from iFinD indicate that as of 16 October a total of 621 listed A-share companies in China had released equity incentive plans since the start of 2022, for a year-on-year (YoY) rise of 21.17%.

The electronics sector accounted for 14.8% of these plans, while mechanical equipment accounted for 11.4%, electrical equipment 10.8%, pharmaceuticals 10.4% and computing 8.2%.

Shenzhen Injoinic Technology is the latest Chinese tech company to release a share incentive plan for key personnel. On 14 October Injoinic announced plans to launch a 14.4666 million share restricted share incentive plan as a long-term mechanism for core personnel.

“It takes a long timeframe for tech enterprises to achieve success and they require reserves of personnel over the long-term,” said Chen Li (陈雳), head of the Chuancai Securities Research Institute (川财证券研究所), to state-owned media.

“Equity incentives can spur a sense of agency amongst key tech research personnel and raise tech research productivity.”