Chinas Nasdaq-style Trading as per China’s Nasdaq inspired stock market has begun with 25 organizations listed by the Shanghai Stock Market run Science and Technology Innovation Board. Widely known as STAR Market, this is a measure by the Chinese government to motivate more Chinese tech companies to list locally by addressing their issues regarding governance.
China’s Nasdaq-style Traders have warned that the primary tradings will be unpredictable because of investors buying and trading stocks. This caution was borne with trade when multiple companies halted post a surge of buying. Affected their circuit breakers or initiatives to temporarily pause selling and purchasing to avoid a stock crash.
The STAR Market was announced as early as last November. As a measure to reform the capital market and making a listing in China more attractive to tech companies. Plethoras of high profile tech IPOs like Xiaomi, Pinduoduo, and Alibaba. Among others have happened in Hong Kong or New York and the STAR market. Could encourage debuts of local stocks and investments. This is a high-stake subject for China, while its trade conflict with the United States exists.
Reports, however, note that the success of STAR markets is far from a surety owing to China’s recent launches of equity markets, namely the ChiNext and New Third Board, in the years 2009 and 2013 respectively. These two launches garner far less heed and recognition as compared to their primary stock. Exchanges located in Shenzhen and Shanghai.