China officially launches technology innovation board, with trading expected to begin within two months
- New ‘Star’ board aims to be like the tech-heavy Nasdaq in the US
- Launch comes amid tensions between US and China over tech
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 launch comes as the US-China trade war has spread to the technology sector, threatening huge home-grown stars like Huawei and others.
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.
Vice-premier Liu He pressed the button at the Lujiazui Forum to start the much-hyped new tech board.
Insiders expect a first batch of more than 20 companies will debut on the board within a month of actual trading beginning.