Star Market, China’s Nasdaq-like tech stock exchange, starts trading

Star Market, Shanghai’s new technology-focused stock exchange, is hoping to nurture local tech firms and bypass New York and Hong Kong.

"So, you want to quintuple your money in a day?" asks Lex in the Financial Times. Investors in one newly listed Chinese firm got just that. Shares in Anji Microelectronics surged by 520% on the first day of trading on Shanghai's new technology-focused exchange. Billed as China's answer to America's Nasdaq, shares on the "Star Market" rose by an average of 140% last Monday.

Advertisement - Article continues below

With the US turning the screws on the likes of Huawei, Beijing wants to show it can nurture its own technology ecosystem without American input, says James Cook in The Daily Telegraph. The Chinese government hopes that the new market will "encourage investment in domestic technology firms" and give mainland innovators "an alternative way to float" that bypasses rival markets in New York and Hong Kong.

The new board is supposed to underscore "a profound shift in China's securities sector", writes Daniel Ren for the South China Morning Post. Yet it is clearly as subject to momentum trading as the main bourse. Extreme volatility is the norm on a stockmarket where trend-following retail investors comprise 80% of turnover. The frenetic trading means that most foreign investors are steering clear of the new exchange, which lacks a link-up with Hong Kong, says Lex. Meanwhile, there are plenty of unprofitable start-ups queuing up to list. But will the Star Market be able to "drag some top tech names on board"?




The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
Investment strategy

The tech stock bubble continues – but wise investors should look for value elsewhere

As tech stocks continue to soar, real value has been forgotten. It’s fine to hold tech, says Merryn Somerset Webb, but investors should look for value…
9 Sep 2019

There are lots of reasons to be bearish – but you should stick with the bulls

There are plenty of reasons to be gloomy about the stockmarkets. But the trend remains up, says Dominic Frisby. And you don’t want to bet against the …
17 Jul 2019

Good news on jobs scares US stockmarkets

June brought the best monthly US jobs growth of the year, but stockmarkets were not best pleased.
11 Jul 2019

Most Popular

UK Economy

What bounce back loans can tell us about how we’ll pay for all this

The government will guarantee emergency "bounce back loans" for small businesses hit by Covid-19. Inevitably, many businesses will default. And there'…
1 Jun 2020

This looks like the biggest opportunity in today’s markets

With low interest rates and constant money-printing, most assets have become expensive. But one major asset class hasn’t. John Stepek explains why com…
2 Jun 2020

These seven charts show exactly why you must own gold today

Covid-19 is accelerating many trends that were already in existence. The rising gold price is one such trend. These seven charts, says Dominic Frisby,…
3 Jun 2020