A high-tech company overtook a traditional blue-chip on Friday to become the most expensive stock in China's A-share market, underscoring a broader market shift toward innovation-driven growth.

Shares of Yuanjie Semiconductor Technology Co Ltd hit a record high of 1,439 yuan on Friday morning before closing at 1,403.08 yuan by midday, surpassing Kweichow Moutai, which ended the session at 1,402.02 yuan, to become the highest-priced stock in the A-share market.

Yuanjie Technology’s share price has more than doubled since the beginning of the year as a leading player in China’s optical chip industry. In 2025, it reported revenue of 601 million yuan ($88 million), up 138.5 percent year-on-year, and net profit of 191 million yuan, reversing previous losses.

The development highlights a structural transition in China’s capital market, with technology firms playing an increasingly prominent role.

Official data shows the electronics sector has surpassed banking to become the largest industry by total market value in 2025, while the number of tech companies among the top 50 listed firms by market value has risen to 24, up from 18 just five years ago.