21 Jul 2019 China kicks off new Shanghai tech board as it tests new ways to improve volatile stock market
- China’s equity markets are the second largest in the world, but they’re often prone to speculative activity and lack of governance.
- In attempt to address some of these issues, China on Monday launched a new Nasdaq-style tech board — the Science and Technology Innovation Board, or “STAR Market” — on which 25 companies were listed.
- As a high-profile pilot program, the development of the new stock board bears watching for how China’s stock markets might look in the future.
China is trying again to boost the credibility of its volatile stock market.
On Monday, China launched a new Nasdaq-style tech board — the Science and Technology Innovation Board, or “STAR Market” — on which 25 companies were listed, as the country attempts to address investor concerns like market volatility and lack of governance.
China boasts the world’s second-largest equity market, just behind the U.S. More foreign capital is expected to flow into mainland Chinese stocks with their inclusion in major investment indexes.
Read the full story here: https://www.cnbc.com/2019/07/22/china-star-market-shanghai-kicks-off-new-nasdaq-style-tech-board.html