Storyline: China's listed firms increase research spending for high-quality growth [Voice_over] More of China's listed companies have been increasing their R&D spending this year, resulting in strong momentum for high-quality development. According to recent data, in the first half of the year, research and development spending amongst A-share firms in China topped 112 billion U.S. dollars, up more than three percent year on year. A representative from an optical communications company that’s listed on Shenzhen's Chi-Next board, says they’ve invested 40 percent of their net profits into R&D and it’s been paying off. [Sound_bite] Hou Dan, technical director, TS Communications Co., Ltd.: "This device long relied on imports and was a bottleneck in our industry. After years of effort, we can now arrange hundreds of optical fibers on a flexible board thinner than a strand of hair and have achieved mass production and sales." [Voice_over] Another technology firm says their year-on-year revenues have gone up by 34 percent thanks to the development of a new production line. [Sound_bite] Wang Rong, chairman, Kerun Intelligent Control Co., Ltd.: "This is a new production line built after listing. Our products have now entered the European market, with North America being the next goal." [Voice_over] Innovation has been driving the number of patents in China lately, with information from the National Intellectual Property Administration showing that in the first half of the year, China held more than five million valid invention patents, up more than 13 percent from last year. [Restrictions : No access Chinese mainland]