If China sees a repeat of our tech/dotcom bubble, it’s because they’re totally asking for it.
Just today, the country launched its ChiNext exchange, specifically designed for smaller, more speculative listing. It’s been compared to the NASDAQ. The whole thing is just begging investor to go wild, and that’s exactly what’s going on.
NYT: Huayi Brothers Media one of China’s top movie studios, soared 210 per cent by midday on the ChiNext exchange in the southern city of Shenzhen. Other companies rose by at least 119 per cent.
The new board is intended to help smaller Chinese companies in a financial system that has long favoured big, state-owned companies. Huayi Brothers and most of the other companies on the new exchange were privately owned, while China’s main exchanges in Shanghai and Shenzhen are dominated by government enterprises.
The communist government has talked for more than a decade about creating a Nasdaq-style market to promote technology and other new industries, but its launch was repeatedly delayed.
There are only 28 companies, including some medical equipment, telecom, and biotech firms.
Anyway, let us know when the domestic ChiNext ETF is out. Can’t be that long.
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