A new NASDAQ-style stock market began operations in China on Monday, July 22nd.
Twenty five technology companies are listed on the STAR Market, and early trading saw some equities rising more than 500%. However the first two days have shown gains and losses, with high volatility.
The STAR Market is an initiative sponsored by the Chinese government to encourage more Chinese tech companies to list domestically and seek domestic capital funding.
The STAR Market also provides more Chinese control in trading issues, including governance and profit reporting requirements.
Initial Public Offerings (IPOs) are another rationale for the creation of the STAR Market. IPOs for high-profile Chinese technology firms (including Tencent, Xiaomi, and Alibaba) were placed in New York City or other international cities.
Having the STAR Market may enable more local stock debuts and investments in China, and so limit China’s exposure in its ongoing trade wars with the U.S.
Mark Lohsen - Executive Director
Originally published at https://www.globalchamber.org/blog/2019/07/23/global-chamber/star-market-opens-aiming-to-be-china-s-nasdaq/
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