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2019-07-22 HKT 09:45
Trading began on Monday on a new Nasdaq-style technology board in Shanghai that represents one of the mainland's most significant market reforms, and a potential weapon in its growing tech rivalry with the United States.
Twenty-five stocks debuted on the Shanghai Stocks Exchange's Sci-Tech Innovation Board – dubbed the Star Market – in which listing and trading rules have been eased to help channel funding to start-ups.
Beijing envisions the board being mentioned in the same breath someday as the tech-heavy US Nasdaq, encouraging firms to list at home after the likes of Alibaba and Baidu chose Wall Street.
But the initial impact is expected to be slight.
"I think the science and technology board will develop into a major and important sector in China's capital markets, but it will take a long time, maybe 10 years, 20 years, or even longer," said Jiang Liangqing, a money manager at Ruisen Capital Management.
For the first time, mainland companies can list without a track record of past profits or restrictions on IPO pricing.
There will be no limits on price movements for the first five days of trading, after which a daily 20 per cent band is imposed.
The mainland's main exchanges are subject to a 10 per cent band to contain volatility on the often rumour-driven markets. (AFP)