On Monday, China launched a new tech stock market, the Science and Technology Innovation Board, STAR Market.
Shares surged in early trading, partly due to oversubscription by retail investors in IPO shares. China boasts the second largest equity market behind the United States and is trying to improve the credibility of its volatile stock market. The STAR market is made up of 25 tech companies.
China has produced some of the world’s largest technology companies, but these list overseas. This is an attempt to make in more attractive to invest in China.
Asian markets
Asian shares traded lower Monday after U.S. stock markets ended down last week. Investors continue to expect a U.S. interest rates cut, but will it be as high as they expect?
China and U.S. trade war continues. Investors await solid news from ‘ongoing’ discussions.
Expect more volatility. Analysts urge caution as this new stock market will need time to develop.