MSCI plans to include stocks listed on China’s newly launched, Nasdaq-style STAR Market in its indexes from next month, as international investors seek opportunities in the world’s second-largest economy.

China is continuing to open up its financial markets despite the ongoing Sino-U.S. trade spat, while major index providers, including MSCI, FTSE Russell and S&P, have begun or are stepping up index inclusion of China’s A shares.

Stocks listed on the STAR Market will be included in the MSCI China Indexes and their derived indexes, if they meet eligibility requirements, MSCI said in a statement Thursday.

The move could potentially improve liquidity in the market and expand foreign investors’ access to the country’s tech sector, to which China is providing policy support to reduce its foreign dependence.

China launched the STAR Market in July, as the country seeks tech self-sufficiency amid the bruising trade war with the United States.

MSCI said the inclusion is separate from adding China A shares to MSCI China and the MSCI Emerging Markets Indexes.

So far, companies have raised a total of US$7 billion on the new market, according to Dealogic. Even as exchange officials slow processing of new listings to tame volatility, the pipeline of STAR applicants has reached 161, the latest figures from the Shanghai Stock Exchange show. China’s stock market operator is also gearing up to launch an index tracking STAR companies later this month. (SD-Agencies)