Trading in China's new Nasdaq stock market began today, with 25 technical companies listed on the Science and Technology Innovation Board, run by the Shanghai Stock Market. Called STAR Market, the board is a government initiative to encourage more Chinese technology companies to behave domestically by addressing government concerns.
Traders warns that initial trading can be volatile when investors buy and trade stocks, and that notifications were made today with the trading of several companies paused after the purchase triggered their circuit breakers, or measures that temporarily stopped buying and sales to prevent storage crashes.
Plans for the STAR market were announced in November as part of the Chinese government's efforts to launch capital market reforms and make listing on mainland China more appealing to technical companies by easing profitability requirements. Some of the highest-profile Chinese tech IPOs, including Alibaba, Tencent, Xiaomi, JD.com and Pinduoduo, have happened in New York City or Hong Kong, and STAR Market can encourage more local debut and investment ̵
But CNBC notes that the success of STAR Market is far from a sure thing, since China has launched two other stock markets (ChiNext in 009 and the new third board in 2013) which still receive far less attention than the two exchanges in Shanghai and Shenzhen.