Beijing has officially launched its new technology innovation board, which is being dubbed China’s Nasdaq-style market.
Huang Hongyuan, chairman of the Shanghai Stock Exchange, told the Lujiazui Forum in Shanghai that some companies will be traded on the new “STAR Market” board within two months.
The Shanghai exchange has approved six firms to float shares on the board, including Shenzhen ChipScreen Biosciences, Anji Microelectronics (Shanghai) and Suzhou Tztek Technology. Some of the companies on the board will eventually be selected to trade on the Hong Kong-Shanghai Stock Connect, providing access to additional money from investors outside of the mainland.
The idea behind the board is to encourage investment in domestic tech innovators, ensuring they have resources to develop and also have an incentive to list at home. It also will make those companies easy for mainland investors to trade in, after complaints that Chinese mega stars like Alibaba, parent company of the South China Morning Post, chose to list in the US rather than at home.