Chinese competitor of NASDAQ, the STAR market is absolutely killing it
The recently launched Shanghai Stock Exchange STAR market, based on the US NASDAQ market, is performing quite well. The space focuses on tech stocks and currently lists 25 companies. And, since its launch, stock prices have performed so well that they have even doubled their initial position.
Develop the local market
In light of these advances, one stock, Anji Microelectronics Technology, even rose 415%. This STAR market will only see actions approved by regulators for the moment, MarketWatch reports. According to the publication, the aim here is for China to inject private capital into its future projects. Essentially, the country gives its citizens the opportunity to buy stocks in tech that normally lists on Wall Street.
Otherwise, the Asian market goes down a bit. Japan-based Nikkei fell 0.3% to 21,400.35. Hang Seng in Hong Kong also fell 0.8% to 28,451.65, and the Shanghai Composite Index fell to 2,901.88, also down 0.8%.
This price hike is pretty insane and experts don’t think it will last. A certain Ronald Wan, managing director of Partners Capital International in Hong Kong, spoke to CNN:
“This [surge] crazy. But this is already exaggerated. I don’t think such gains can last long. It is far too speculative.
It’s not entirely surprising, however, that this new market launch is doing well. For some time now, the Chinese government has been pushing local businesses to help increase the value of the Chinese currency. They are trying to become more self-reliant and less dependent on the US dollar and other foreign markets. This is also due to the recent trade war between the two countries, due in large part to US President Donald Trump.
Moreover, this is not the first time that China has attacked the Nasdaq. This is the first time it worked, however. Previous attempts had taken place in 2009 and 2013, which failed due to a lack of interesting quotes and stocks. And who knows? We might start to see Chinese citizens using robot advisers to participate even more in the commercial market.