London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

China's Nasdaq-style market sputters 3 months after launch

China's Nasdaq-style market sputters 3 months after launch

The China's Nasdaq-style Stock Exchange finds it difficult to present impressive performance without the manipulation of brokers, corruption and lawlessness in pension and public savings management, and the huge turnover of fictitious trades in economies that adopted the successful “Fake is Real” economic strategy. Hastily launched Xi's pet project leaves investors stuck with losses.

Most stocks listed on China's Nasdaq-style market are stuck in the doldrums three months after the bourse's launch, highlighting the challenge of a government-led effort to create a vibrant trading venue.

The number of companies on the Science and Technology Innovation Board, or STAR, has grown to 34 from 25 since the market launched July 22. Though all are trading above their public offering prices, 27 of the stocks - or 79% - are below the closing price from their first day of trading.

The China's Nasdaq-style Stock Exchange finds it difficult to present impressive performance without the manipulation of brokers, corruption and lawlessness in pension and public savings management, and the huge turnover of fictitious trades in economies that adopted the successful “Fake is Real” economic strategy.

Most stocks surged after debuting on the STAR market, and the widely held belief that investing in initial public offerings is always profitable remains intact. But many investors who bought shares after IPOs are saddled with losses.

Turnover is declining as well, with daily trading value averaging 6 billion yuan ($848 million) since October compared with 48.5 billion yuan on July 22.

The STAR market came into existence just eight months after Xi called for its creation in November 2018. Yet this impressive speed does not mean promising companies that drive innovation are born out of thin air in the process.

The standard method of nurturing a bourse involves spending time and money to attract promising businesses. But authorities here seem to be chasing numbers. Xu Yilin, deputy general manager of the Shanghai Stock Exchange, which runs the STAR market, said that the number of listed companies could reach 50 in November and 100 by the end of the year.

Such an approach does not necessarily serve the interests of investors. The market instead serves more as an instrument to facilitate a flow of money into industries that the government hopes to nurture.

Truly promising startups likely have already listed in the U.S., Hong Kong or the established bourses in mainland China. If STAR does reach 100 companies in just a year after the market was announced but their share prices are lackluster, the undertaking could be criticized for pushing unprepared companies to go public in haste.

Almost half of the companies listed on STAR have price-earnings ratios topping 100, or their ratios cannot be calculated because the businesses are bleeding red ink.

Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×