CHINA’S technology focused STAR Market board may be just over a year old, but it already ranks among the world’s top three initial public offering (IPO) venues.

Companies have raised US$19.4 billion through listings on the Shanghai Stock Exchange’s STAR Market board this year, trailing only the New York Stock Exchange’s US$29.7 billion haul and Nasdaq’s US$29.4 billion.

Thanks to China’s top chipmaker Semiconductor Manufacturing International Corp.’s US$7.5 billion second listing — the world’s largest this year — on the neophyte trading board, IPO proceeds raised on the STAR Market have overtaken those on Hong Kong’s stock exchange, the busiest venue last year.

In a sign of its increasing appeal, mobile payment firm Ant Group is planning a dual listing on the STAR board and the Hong Kong stock exchange in which it is seeking a valuation of more than US$200 billion. Ant’s IPO is likely to be one of the world’s biggest in years.

As tensions between the United States and China show no signs of easing, having a viable alternative listing venue to New York for China’s tech startups is becoming more important.

Previously, tech heavyweights such as Alibaba Group Holdings Ltd., JD.com Inc. and Baidu Inc. all sold shares in New York.

Now, several U.S.-listed Chinese mainland firms are considering or have completed dual listings in Hong Kong, broadening their investor base and hedging against the risk of being delisted in New York.

Those offerings have helped push the amount raised through first-time share sales in Hong Kong to US$18.7 billion, still below the STAR Market.

(SD-Agencies)