-
Important news
-
News
-
Shenzhen
-
China
-
World
-
Opinion
-
Sports
-
Kaleidoscope
-
Photo Highlights
-
Business
-
Markets
-
Business/Markets
-
World Economy
-
Speak Shenzhen
-
Leisure Highlights
-
Culture
-
Travel
-
Entertainment
-
Digital Paper
-
In depth
-
Weekend
-
Lifestyle
-
Diversions
-
Movies
-
Hotels
-
Special Report
-
Yes Teens
-
News Picks
-
Tech and Science
-
Glamour
-
Campus
-
Budding Writers
-
Fun
-
Futian Today
-
Advertorial
-
CHTF Special
-
FOCUS
-
Guide
-
Nanshan
-
Hit Bravo
-
People
-
Person of the week
-
Majors Forum
-
Shopping
-
Investment
-
Tech and Vogue
-
Junior Journalist Program
-
Currency Focus
-
Food Drink
-
Restaurants
-
Yearend Review
-
QINGDAO TODAY
在线翻译:
szdaily -> Business/Markets -> 
New tech board to kick off Monday
    2019-07-19  08:53    Shenzhen Daily

TRADING on China’s Nasdaq-style tech board, the STAR Market, will start Monday and the market for high-tech companies is expected to play a key role in China’s efforts to become technologically self-reliant.

Eight months after President Xi Jinping unveiled plans for Shanghai’s technology innovation board, the first batch of 25 companies, ranging from chipmakers to biotech firms, will debut on the board, launched by the Shanghai Stock Exchange.

Modeled after Nasdaq and complete with a U.S.-style initial public offering (IPO) system, the new board may be China’s boldest attempt at capital market reforms yet. Trading rules also have been loosened for the board to give market forces a bigger role in setting share prices.

The new board will host companies with “hard technologies” in six strategic industries: next-generation information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, and biotech. The board is driven by China’s ambition to become technologically self-reliant.

The STAR Market gives small Chinese investors a chance to buy into tech industries that until now have turned to Wall Street to sell shares.

“The new board’s important role is to provide a fundraising channel for China’s scientific and technologic innovation,” said economist Lu Zhengwei at Industrial Bank in Shanghai.

China’s stock exchanges in Shanghai and Shenzhen were set up in the early 1990s to raise money mainly for State-owned firms. They have expanded to include private enterprises but still are dominated by government-owned companies such as PetroChina Ltd. and China Mobile Ltd.

Firms such as e-commerce giants Alibaba and JD.com and search operator Baidu.com have raised billions of dollars on Wall Street. But foreign stock sales are inconvenient and expensive for smaller firms.

The STAR Market has more lenient standards for profitability and price volatility than the main exchanges. The Shenzhen Stock Exchange launched its own second board, dubbed ChiNext, in 2009 for small, faster-growing companies.

To trade on the new board, retail investors must have 500,000 yuan (US$72,674) in financial assets in their trading accounts, as well as two years’ trading experience. (SD-Agencies)

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn