China’s new Nasdaq-style board begins trading


People take pictures during an opening ceremony of the Shanghai Stock Exchange's Sci-Tech Innovation Board in Shanghai on July 22, 2019Image copyright
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Trading on China’s new Nasdaq-style technology board began on Monday and got off to a solid start.

Most shares on the so-called Star market, operated by the Shanghai Stock Exchange, surged on debut.

Last year China said it would launch the technology-focused trading board, as it sought to build on Shanghai’s role as a global financial hub.

It marks a significant step in the country’s bid to open its economy and markets.

Some 25 companies began trading on the new tech board.

Semiconductor firm Anji Microelectronics Technology was among the best performers, with shares shooting up more than 400% in morning trading.

Zhangjiang Hangke Technology, which manufactures battery test equipment, jumped more than 120%.

The Shanghai Stock Exchange has said an index tracking the Star Market would be launched in the coming weeks.

The board was unveiled by President Xi Jinping in November and is seen as part of China’s push to grow its technology sector.

China is battling a trade war with the US, which Washington recently widened to target technology companies.

While the US imposed trade restrictions on Chinese telecoms giant Huawei on the basis that it poses a national security risk, some argue the US moves are an attempt to counter China’s ambitions to become a global technology leader.

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