China’s new Nasdaq-style stock market surges on debut day

July 23, 2019 | Investopaper

China’s new Nasdaq-style stock market kicked off this Monday. Chinese President Xi Jinping had already unveiled about it a year ago. The new board of the Shanghai Stock Exchange is named as Star Market.

On the debut day, the 25 stocks listed on Star Market surged by 140 percent on average. Investors have given an overwhelming response to the new stock exchange which is a part of China’s attempt for tech superpower. The massive growth has created several new tech billionaires in the process.

Big Chinese tech companies like Alibaba and Tencent can consider returning from stock Markets in New York and Hongkong if Star Market gets a similar response in the coming days.

Analysts said the gains were being driven by China’s desire for a strong market debut and unrealistic expectations among investors, fueled by state propaganda.