File photo/Zhang Jian (NBD)

July 22 (NBD) -- China's sci-tech innovation board (STAR market) on Monday morning started trading on the Shanghai Stock Exchange, with the first batch of 25 companies making their debut and a lot more in the pipeline.

Among the firms that are applying for IPO on the STAR market, National Business Daily (NBD) found that several including Eversec Technology, Hillstone Networks, and ABT Networks are banking on 5G security.

For instance, Eversec Technology said in its latest prospectus that the company is to raise no less than 800 million yuan (116 million U.S. dollars) through a STAR IPO and 305 million yuan of the proceeds will used for 5G security-related projects.

Ever since China granted 5G licenses for commercial use to the first four companies in June this year, a slew of companies are in the race for dominance in the 5G industry. But the heated sector has aroused concerns among industry insiders over network security.

"5G network security is a big issue," telecom expert Xiang Ligang told NBD. Xiang likened the current Internet to a sieve which has a lot of small holes, pointing at the poor security. "5G is referred to as smart Internet, there will be a major problem if network security status doesn't change in the time of 5G."

However, some took an optimistic attitude towards safety of 5G network. The person in charge of 5G technology of China Mobile said to NBD that the combination of AI and 5G will enhance the network's ability of active defense.

Worried or optimistic as the people are, they all underscored the significance of Internet security. There is no doubt that commercialization of 5G entails qualified "security details". CCID Consulting expected the market of network information security will set on the path of steady expansion with overall popularization of new technologies such as 5G, Internet of Things and AI. The market is projected to reach 164.9 billion U.S. dollars in 2021, according to the research firm.

Email: gaohan@nbd.com.cn