A tale of two cities: Shenzhen vs Shanghai
Shenzhen bourse offers investors access to young entrepreneurs and non-state companies
The Shanghai and Shenzhen bourses opened a few days apart from each other in 1990, but their growth over the past 26 years has traced different trajectories in China’s economic growth and transformation.
Shenzhen, located in China’s manufacturing hub and an hour’s journey by road to Hong Kong, was where technology companies, start-ups and young entrepreneurs sought to raise funds for their ventures, brokers and fund managers said.
“The Shanghai market lists more of the old-economy companies from traditional industries whereas Shenzhen features new-economy companies and stocks with growth potential,” said Hong Kong Investment Funds Association chief executive Sally Wong. “There may be more unique, niche companies in Shenzhen.”
By trotting out the long-awaited programme, the government aims to put its best foot forward ahead of hosting a gathering of the Group of 20 nations in early September in eastern China’s Hangzhou city.
Shenzhen was a nondescript village in southern China until former paramount leader Deng Xiaoping picked it as the country’s experiment with market-style capitalism in the early 1980s.