China's STAR Market, officially known as the Science and Technology Innovation Board of the Shanghai Stock Exchange (SSE), has experienced a tumultuous journey since its launch in 2019. Introduced amid escalating Sino-U.S. trade tensions, the STAR Market swiftly rose by approximately 40% on the SSE Science and Technology Innovation Board 50 Index within its first two and a half years.
However, the market faced significant challenges, including a consecutive downturn of 46%, contrasting with the Shanghai Composite Index's rise of 19% followed by a 16% decline. Despite these rollercoaster performances, the STAR Market has demonstrated remarkable resilience.
Amid the unprecedented impact of the COVID-19 pandemic and economic slowdowns, the STAR Market's growth trajectory remained upward. By May 2024, its market capitalization surged from 560.7 billion yuan ($77.31 billion) at inception to an impressive 5.17 trillion yuan. Its share of the entire SSE rose from 1.7% to 12.1%, while turnover increased from 5.6% to 15.3% of the SSE. Notably, as a new equity market, the STAR Market has showcased a strong fundraising capacity, with initial public offerings and seasoned financings accounting for 40% and 11.5% of the SSE last year, respectively, according to iFind Financial Data (iFind).
The STAR Market continues to attract investors and foster growth, positioning itself as a pivotal platform for China's technological and economic innovation.
Reference(s):
cgtn.com
