What China’s Newest Tech Bourse Has Achieved So Far

While China has some of the world’s biggest technology companies, many are listed in the U.S. and Hong Kong. A new trading venue launched last year in Shanghai is making it easier for them to access funding at home. The Nasdaq-style SSE STAR Market has relatively relaxed rules on listing and trading that have drawn the attention of big names including Jack Ma’s Ant Group and Semiconductor Manufacturing International Corp. The result has been at times wild, demonstrating why authorities were so keen to build a testing ground before unleashing new rules on other exchanges.

It’s “where the rising star companies cluster,” according to its website. Part of the Shanghai Stock Exchange, it has a simplified system under which tech companies and startups face less red tape in getting the nod to sell shares. The changes are aimed at lowering the wait time for approval to three months, compared to perhaps years on China’s other stock venues. The new board also removes limits on the pricing of initial public offerings and eliminates caps on first-day trading gains.