Shanghai Stock Exchange says to widen daily trading limits for new tech board–Reuters

What happened: The Shanghai Stock Exchange announced Wednesday that its new tech startup board will have looser trading limits than existing exchanges in Shanghai and Shenzhen. Stocks will be allowed to fall or rise 20% in a day before trading is halted, compared to 10% in other boards. In addition, no daily limits exist for the first five days of newly listed companies. According to an earlier announcement by China’s securities regulator, the board will also allow enterprises that have yet to make a profit, as well as companies with weighted voting rights, to list.

Why it’s important: By loosening trading restrictions for the new board, the Shanghai Stock Exchange likely hopes to head off the disappointing performance of previous attempts at tech-centered boards in Shenzhen and Beijing. According to the China Securities Regulatory Commission, the new board will focus on emerging sectors like new energy, biotechnology, high-tech equipment manufacturing, big data, and cloud computing. Once launched, it’s intended to stimulate the country’s technological development and “innovative capabilities,” trade war or no.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Bailey Hu

Bailey Hu is based in China’s hardware capital, Shenzhen. Her interests include local maker culture, grassroots innovation and how tech shapes society, as well as vice versa.