Launch of NASDAQ Chinese technology stocks

China has a competing financial market on the Nasdaq in New York and began Monday on a new platform of the Shanghai Stock Exchange dedicated to technology stocks, facing increasing competition between Beijing and Washington.

This is one of the most important developments in the Chinese market, the Asian giant seeking to adapt its business model to new technologies and high value-added products, at the height of a trade war with the United States. .

The Chinese Nasdaq, nicknamed "Star Market", has put in place flexible conditions to help promising companies raise capital more easily to finance their growth.

The stated goal is also to keep domestic technology companies in China at a time when Beijing is competing with Washington to dominate the high-tech sector.

"If China does not launch its new platform on the technology exchange, it will miss the opportunity to focus its economic development on the new economy," said Yang Delong, chief economist at First Severant. Fuel Management in Shenzhen.

Large Chinese companies such as Alibaba (e-commerce) and the Baidu search engine have been on Wall Street for several years.

The internet giant Tenst has chosen the Hong Kong Stock Exchange.

When major Chinese companies are listed overseas, Beijing has less influence over its operations to attract capital. On the other hand, the restrictions imposed by Beijing on the purchase of foreign securities prevent Chinese investors from contributing to the success of these companies.

In the first five days of IPO, day-to-day volatility is no longer limited (currently 10% on the Shanghai and Shenzhen Stock Exchanges).