Stocks listed on China's new "Star Market," which is part of China's broader initiative to entice local wealth away from New York and Hong Kong-based exchanges, surged 140% on average at the end of the exchange's first day of trading. The 25 companies raised more than $5.4b, with some stocks closing as high as 400% on the day.
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China's new Nasdaq-style exchange had crazy first day
China has been encouraging its companies to become less dependent on foreign money and technology, a campaign that has intensified during the trade war with the United States and since the Trump administration blacklisted Huawei, a leading global smartphone maker and 5G network supplier. Previous attempts by China to create a rival to Nasdaq in 2009 and 2013 failed because of a lack of quality listings and limited turnover in shares. Shanghai's Star Market might be different. It's the first time a Chinese president has announced the establishment of a stock exchange, highlighting the extent to which Beijing hopes that the board will help China become the dominant player in the technologies of the future.
