Regulator tips further support for STAR Market

China will launch a STAR Market board index, accelerate incorporation of STAR-listed firms into the Shanghai-Hong Kong Stock Connect scheme, introduce a market maker system and study how to transfer existing IPO stocks, said Yi Huiman, chairman of the China Securities Regulatory Commission.

“The China Securities Regulatory Commission will, as always, vigorously support the construction of Shanghai's position as a global finance center, along with related reforms and innovative measures,” said Yi during a speech at the 12th Lujiazui Forum, which opened on Thursday in Shanghai.

So far, 111 firms have listed in the STAR Market, raising a total of 129.3 billion yuan (US$18.5 billion) through their IPOs. These firms have combined market value of 1.77 trillion yuan as of Wednesday, the new board’s first-year anniversary. 

Forty-six STAR-listed firms have valuations exceeding 10 billion yuan, including two firms valued at over 100 billion yuan, according to data provider Wind.

China will launch related products and tools to support more "hardcore technology" companies to tap the capital market, Yi also told the forum.

Hong Kong-listed auto brand Geely is seeking a secondary IPO on the STAR Market. It will be the first carmaker on the board if its listing plans are approved.

The STAR Market is now “a hub for listings from many younger innovative, new economy companies,” especially in technology, media and telecommunications, life sciences and health care, according to a recent statement from Deloitte.

Other top names eyeing STAR listings include chipmaker SMIC, which plans to raise 20 billion yuan; and Unisoc, a top Chinese semiconductor designer.