London Daily

Focus on the big picture.
Thursday, Oct 02, 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
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
Nvidia Pledges Up to $100 Billion Investment in OpenAI to Power Massive AI Data Center Build-Out
U.S. Signals ‘Large and Forceful’ Support for Argentina Amid Market Turmoil
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
Vietnam Faces Up to $25 Billion Export Loss as U.S. Tariffs Bite
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Indonesia Court Upholds Military Law Amid Concerns Over Expanded Civilian Role
Larry Ellison, Michael Dell and Rupert Murdoch Join Trump-Backed Bid to Take Over TikTok
Trump and Musk Reunite Publicly for First Time Since Fallout at Kirk Memorial
Vietnam Closes 86 Million Untouched Bank Accounts Over Biometric ID Rules
×