CHINA’S securities regulator issued eight measures on Wednesday (Jun 19) to enhance the reform of the tech-focused STAR Market to drive innovation and the development of “new productive forces”, it said in a statement.
The China Securities Regulatory Commission (CSRC) will support “hard tech” companies to list on the board, and improve stock and bond financing mechanism for STAR Market-listed companies, the statement added.
First announced by President Xi Jinping in 2018 and launched in 2019, the STAR Market is part of Beijing’s efforts to become self-sufficient in core technologies such as semiconductors, information technology (IT), and biotech.
The measures were announced as China held its annual Lujiazui Forum in Shanghai, where the CSRC chairman Wu Qing also said the watchdog will crack down on market misbehaviours and strengthen regulation of high-frequency trading and over-the-counter derivatives.
In the CSRC statement, the regulator said it will improve trading mechanisms in the STAR Market and prevent market risks, adding it will enrich ETF (exchange-traded fund) and ETF options products for the market.
The watchdog also promised all-round regulation on the STAR Market, saying it will crack down on fraudulent listing and financial fraud, further tighten the responsibilities of issuers and intermediaries, and protect small investors.
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So far, 573 companies are listed on the STAR Market, with a market cap of 5.2 trillion yuan (S$970 billion).
The SSE Star 50 Index, which tracked the 50 biggest companies listed on the board, has fallen roughly 12 per cent so far this year, compared with a 3 per cent gain in the broad market . REUTERS
