Nasdaq's rival Star aims to lead with new reforms

 Last month, China celebrated the first anniversary of the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board.  

 Last month, China celebrated the first anniversary of the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board.  Celebrating its one year old, Star Market is a new stock market that creates a competitor for the Nasdaq of the United States, and aims to create a good alternative for tech firms that want to publicize in a different center than the US or Hong Kong stock exchanges.
 
 The astonishing performance of the stock market, also known as the STAR market, in its first year of operation exceeded every expectation, reaching second place in this year's global IPO ranking after Nasdaq and before Hong Kong.  Starting this week, Shanghai will not be alone in offering a viable platform for tech companies, as the Shenzhen Stock Exchange's technology board ChiNext with a market value of about $ 1.3 trillion has reportedly initiated similar ongoing reforms.
 
 In detail, ChiNext will double the daily trading band and companies can rise and fall up and down to 20 percent on a daily basis, compared to a 10 percent cap previously.  There will be no restrictions on the transaction volume in the first five days of transactions.  Beijing FengShangShiJi Culture Media and Yangling Metron New Materia seize the opportunity of this great reform and are part of a group of 18 companies.
 
 Growth is caught with stock market reforms
 
 The decision to introduce innovative reforms in local stock markets is interpreted as an indication of the consistency in the progress plan in developing China's financial market.  China aims to create competition by capturing the growth of many domestic start-ups by doubling its efforts to expand its liberalization policies to the Nasdaq-style technology board in Shenzhen.
 
 Increasing volatility by loosening stock trading barriers and introducing a market-based registration show clear moves by Chinese policymakers towards long-awaited reforms in the domestic capital market that aim to increase market efficiency while creating healthy competition among local technology boards.  It also points out that the growing hostility of the US towards Chinese firms could lead to an opportunity to take an important step towards developing and increasing the attractiveness of China's capital market.
 
 China Radio International
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