China’s answer to Nasdaq

Shares rocketed by as much as 520 per cent on the first day of trading for Shanghai’s science and technology-focused equities market in what the Chinese government will hope is a further sign of its resilience in the face of its trade war with the US. The Star Market was announced by President Xi Jinping less than a year ago and has been billed as China’s answer to Nasdaq, the tech-dominant stock market in the US. Beijing hopes it will encourage investment in domestic tech companies and also lead to more Chinese businesses listing at home rather than overseas as China tries to counter pressure on its technology industry from Washington, which earlier this year blacklisted the country’s sector champion, telecoms equipment maker Huawei. More than 140 technology and science companies have signed up to list their stocks on the new facility run by the Shanghai Stock Exchange, aiming to raise a total Rmb128.8 billion ($18.7 billion)… Along the companies to list on the first day of trading were chipmakers Anji and Montage Technology, which rose as much as 520 per cent and 285 per cent, respectively… The sharp rises are unusual in China, where stock movements are normally capped within a range defined by authorities.
Hudson Lockett