Foreign Investors Flock to STAR Market
Foreign investors' interest in the STAR Market has reached record levels. According to data from the Shanghai Stock Exchange, the STAR 50 Index rose by 34.8% from the beginning of the second quarter until July 28. During the same period, the Kospi gained 19.22%, the Nasdaq increased by 15.22%, while the Kosdaq fell by 32.93%. Guosen Securities reported that in the second quarter, there was a foreign capital inflow of 219.3 billion yuan, approximately 30.6 billion dollars, into China's mainland A-share markets. The STAR Market was established in July 2019 to facilitate access to financing for high-tech companies. The market is expected to rise by 36% to reach 15.6729 trillion yuan, approximately 2.19 trillion dollars, by 2025. ChangXin Memory Technologies, which went public on July 27, has become the largest company on the STAR Market by market value. Analysts believe that the rise in the STAR Market could accelerate, and the policies supporting the stock market by Chinese authorities may be effective. Citigroup has updated its recommendations regarding Chinese stocks.
-- Price
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