Chinese President Xi Jinping announced plans to set up a new bourse aimed at helping technology start-ups raise capital during a speech opening the China International Import Expo in Shanghai.
The announcement caught markets by surprise, with investors dropping shares in the operator of the Hong Kong bourse in anticipation that the new tech board is China’s bid to become the go-to destination for fledgling companies.
Xi also said a new programme will enable start-ups to more seamlessly raise capital through IPOs, with the country’s securities regulators having smaller scope to influence stock prices and dates of debuts.
“The capital market will become more efficient, which will be helpful for value investing,” one market analyst told the South China Morning Post. “In the long run, the creation of the technology board on the Shanghai exchange will help build the city into China’s technological innovation centre.”