A new stock market in China, ChiNext, opened on Friday. The market was designed for technologically oriented companies and was modeled after the the Nasdaq stock market. In the first day alone the total value had almost doubled. The market was clearly well received. This market is growing far more than other Asian markets at this time. Unfortunately, the shares can be bought by mainland Chinese with few exception, even though there has been a lot of foreign interest.
3 comments:
I think this was not only a brilliant idea, but pretty remarkable accomplishment for China. I think the idea to create a new stock market for technologically-oriented companies is a great idea in general, but especially in China which is one of the world leaders in technological advancements. It is pretty obvious that this new invention had a positive reception with the Chinese population because at one point during the opening day the market had a 30-minute cooling off period because shares climbed so quickly that a market circuit breaker kicked in for nearly every stock - if only the Nasdaq had such a problem!
wow China got a great start from the stock market. China is full of surprises and its economy has been getting better over time. The stock market is a nice addition and people of China seem to be interested in it as the total value doubled within a day.
I also agree that this was a smart move for China. It just makes too much sense with the way their economy is performing plus the fact that they are a technological pioneer. It is also interesting to realize how this represents a further shift towards a true market system for China.
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