China's First Electronic Balance Wheel Watch | Xiang Yang SD2
In 1961, Switzerland’s Ebauches S.A. (ESA) released the world’s first mass-produced electronic watches (movement L4750). This hybrid electro-mechanical system was a major technological breakthrough, adding electronic components to a traditional mechanical system, and later became the foundation for China’s independent research and development in this field.
1. Early Domestic R&D (1962–1968): Origins and Factory Transition
Shortly after the introduction of the electronic balance wheel watch, the Shanghai Metal Watch Band Factory initiated China’s first in house research program by studying imported watch samples. “In-house” is emphasised here, as earlier mechanical watch development had relied on assistance from other countries, such as Russia.
In 1966, the R&D team started producing small parts for testing at the Shanghai Ballpoint Pen Factory, a state-owned enterprise known for precision manufacturing. The factory was famous for its “Hero” brand pens, which were known for their durability and affordability, widely used across China, and exported internationally. Naturally, a ballpoint pen factory was equipped with strong capabilities in metal stamping, miniature alloy machining, and small-part assembly. These capabilities made it uniquely suited to produce the fine components required for electronic watch movements, which traditional watch factories struggled to manufacture at scale.

After a year of research and testing In 1967, the R&D team has successfully developed China’s first domestically produced balance wheel electronic watch. However, due to insufficient production capacity, the project could not progress beyond the prototype stage. It should be noted that China was still in the midst of the Cultural Revolution at the time, with the country in a period of recovery and resources severely constrained.
The whole program was formally transferred to the Shanghai Ballpoint Pen Factory in 1968. The factory continued prototype testing and trial production, while also developing a dedicated dual cell mercury button battery to power the movement.
2. SD1 Development (1969–1970): First Standardized Movement
Early prototypes were bulky, requiring snap-on case backs to reduce overall size—an approach that compromised water resistance. In April 1970, engineers completed a full redesign focused on miniaturization and durability designated SD1. This includes reducing the movement from 31.5 mm to 30.45 mm, reducing the balance wheel from 450 mg to 340 mg and increase the beat rate from 21,6000 to 24,000 beats per hour.

3. SD2 Upgrade and Commercialization (1972–Mid/Late 1970s)
Building on the SD1 platform, the factory (renamed the Shanghai No. 6 Watch Factory) collaborated with the Shanghai Pujiang Electric Meter Factory and Fudan University to achieve further technical advancements.
In 1972, the upgraded SD2 electronic balance wheel watch was introduced and marketed under the brand “Xiang Yang” (向阳).


Production of this first-generation domestic electronic watch continued until the early 1980s, with approximately 30,000 units manufactured and released in trial sales across Shanghai.
Technical Performance
These watches used crystal triode switching circuits to generate pulsed current, operating at an oscillation frequency of 36,000 bph, significantly higher than other domestic mechanical watches. This high beat rate gave the seconds hand a smooth, gliding motion, similar to that seen in other high-beat models such as the Seiko Lord Marvel.

This resulted in a daily accuracy of approximately ±20 seconds, representing a major advancement in China’s watchmaking capabilities.
A breakthrough born of resilience
When I first learned about this watch from my watch pal @skin_diver_lover, I knew it had to become a permanent part of my collection. This quirky little piece holds a significant place in Chinese horological history as the country’s first electronic balance wheel watch. More than that, it stands as a testament to resilience, developed during the Cultural Revolution, a time when resources were exceptionally scarce.

What makes the story even more remarkable is the decision to develop it within a ballpoint pen factory. At first glance, it seems unlikely, but in hindsight, it was a brilliantly practical choice. The factory’s expertise in precision metalwork made it uniquely capable of producing the small, intricate components required for such a watch.
Sunflower facing the Sun
The origin of the name “Xiang-Yang” (向阳, literal meaning: facing the sun) remains unclear, but paired with the sunflower logo, it naturally evokes the image of a sunflower turning toward the sun. There is something quietly poetic about that. Every time I glance down at the dial, it brings a small sense of optimism, a reminder to stay positive, regardless of circumstances.

At ~37mm, it is noticeably larger than most Chinese watches from the same era. It wears with a satisfying presence on the wrist while remaining comfortably within classic proportions. Turning the watch over reveals the caseback still engraved with “Shanghai Ballpoint Pen Factory,” a detail that firmly anchors its origin. It is the kind of historical quirk you would be hard-pressed to find elsewhere.
As the first commercially available version of China’s electronic balance wheel technology, the Xiang Yang SD2 holds an important place in Chinese horological history.








