Associated Press Guests, from left, Yi Huiman, chairman of China Securities Regulatory Commission, Liu He, vice premier, Li Qiang, top party official of Shanghai, and Ying Yong, Shanghai's mayor, celebrate the launch of the SSE STAR Market on Monday.
Friday, July 19, 2019 1:00 am
China set to launch NASDAQ version
BEIJING – Trading starts Monday on a Chinese stock market for high-tech companies that play a key role in official development plans that are straining relations with Washington.
Regulators have approved 25 companies in information technology and other fields seen by communist leaders as a path to prosperity and global influence for the Shanghai Stock Exchange's STAR Market.
The market, modeled on the U.S.-based NASDAQ, reflects the ruling Communist Party's desire to channel private capital into its development plans.
It gives small Chinese investors a chance to buy into tech industries that until now have turned to Wall Street to sell shares.
The STAR Market has no direct link to Beijing's tariff war with President Donald Trump over the United States' complaints that China steals or pressures companies into handing over technology. But it will raise money for industries some American officials see as a competitive threat to U.S. technology leadership.
“The new board's important role is to provide a fundraising channel for China's scientific and technologic innovation,” said economist Lu Zhengwei at Industrial Bank in Shanghai.