STAR Market is a tech board, it offers hope for the Chinese venture capitalists

SHANGHAI / HONG KONG (Reuters) – the Chinese venture-capital firm, a New point of view on the capital invested in two start-ups, the emphasis is on cloud computing and micro-optics, and the plan was to eventually take them public on the Nasdaq stock market.

A FILE PHOTO of A sign in front of STAR Market, is China’s new Nasdaq-style and tech, the board of directors shall be given after the closing ceremony of the first batch of companies on the Shanghai Stock Exchange (SSE) in Shanghai, China, on July 22, 2019. REUTERS/Stringer

However, with the launch of China’s new product-Market-tech executive and an escalating trade war with the United States of america partner and I, Shen said that it is more useful to have a list of loss-making DaoCloud, North, Ocean Photonics, in the city of Shanghai.

“The working class has quite a big impact,” Shen said, adding that the trade tensions, injecting uncertainty into the valuation, financing, and investment planning.

List-closer to the investor base, it is also convenient because there’s no language barriers or time differences,” Shen added.

The STAR Market, which makes it possible to pre-profit companies to be in China for the first time, it will give the venture capitalists a new way to exit the investment in a loss-making start-ups. The sharp deterioration in the Sino-US relationship has also pushed Chinese companies to list at home.

“That trend is set to accelerate, given the perceived risks associated with a U.S. listing, such as trade tensions escalate,” said Oliver, and the Dutch psychological association, the Hong Kong-based partner at law firm Ropes & Gray.

The new business has been launched in China’s venture capital industry has been in the cooling system. Beijing-the debt reduction campaign will hurt fund-raising by local currency funds, and a broad crackdown on shadow banking has undermined liquidity.

Venture-capital and private-equity firms in China to increase to only $5.5 billion of yuan-denominated bond funds in the first six months of this year, according to data provider Preqin. That compares with the $15.5 billion a year earlier, to $62.1 billion in the first half of 2017.

Bao Fan, chief executive of investment bank China Renaissance in 1911.HK), a leading player in china’s tech sector, said the STAR Market, “is a positive” by investors.

In Offshore deals have not been easy for the Chinese to start-ups, ” he said, “especially since a company would need to grow to a certain size in order to be attractive to offshore investors.”

A Chinese venture capital firm, cornerstone of the Capital, which is supported by a wide range of the Nasdaq-listed Chinese companies, it is more and more looking at the STAR Market deals.

Drugmaker Zelgen, which is supported by the Corner-Stone of Capital, it has cancelled a plan for a stock exchange listing to the Nasdaq index, and used in china. The developer of cancer drugs, may become China’s first listed company with no revenues or profits.


STAR Market made its debut in the last month or so, in the midst of the fanfare and the enthusiasm of the investors. Of the 25 companies that are on the board, from chip-makers, and healthcare companies has increased by 140%, on average, on the first day of trading.

Venture capitalists are rushing to embrace the market as a means of returning profits to its investors and attract more funds.

However, the nib is very limited. The power of the Market, only the entries in a few of the areas of both “hard” technologies, such as AI, cloud computing, green energy, and biotechnology. And the VC investors are, in general, you must wait 12 months from the listing prior to the sale of the shares.

Andrew Qian, CEO of Shanghai based on the New Capital, and said the STARS on the Market, the launch has helped the venture capital industry to thaw after being frozen out of season.

A new Access plan is more of a domestic listing firms in its portfolio and is to launch a tech fund, targeting companies in industries such as the AI, and 5G networks.

But the creative fusion of Smoke, the chairman of Shanghai-based Vstar Capital, have warned that most of the venture capital funds continue to struggle.

With a total of 14,000 venture capital and private equity, competitors, or consolidation, it will be much faster this year,” he said at a forum in Shanghai recently. In order to survive, the remaining amount will need to focus on high-tech investments, ” he said.


Some analysts see the STAR Market, as China is the world’s most audacious and capital market reforms have aimed to attract tech listings away from New York city or Hong Kong.

Since Washington is on the black list of the Chinese tech giant Huawei on October 16, the overseas-listed Chinese companies (in FXI.(P) to have fallen by around 8%, far underperforming the S&P index .DEPARTMENTS around the flat.

“A lot of (Chinese) tech companies, which are listed in the U.S., or who are thinking about listing in the US, are afraid they will be caught up in the conflict,” said Xuong Liu, a China-based managing director at consulting firm Alvarez & Marsal.

The valuation of US-listed Chinese tech companies will be hurt by the end of August, She proposed that Chinese venture capitalists to re-consider their exit strategies.”

Terence Lin, the chief executive of a boutique investment bank in the World, is the Financial Holding company of the Group, said that the trade war has been a source of concern for Chinese companies seeking a US listing: “nearly Nine out of 10 customers would ask for this to be a problem. It is up to the back of the head.”

In the US market, however, continues to be attractive for many Chinese companies, thanks to its ample liquidity, regulation, transparency, and a simple list of rules, ” says Lin.

Drew Bernstein, co-managing partner of Marcum Bernstein & Pinchuk, one of the leading auditors of Chinese companies listed in the u.s., has been agreed upon.

“If you’re looking for the deepest capital markets in the most cutting-edge technology, analysts said the possibility of offshore liquidity is a global brand in the AMERICAN markets and will continue to be a very attractive proposition,” he said. “But it’s a real commitment.”

Reporting by Samuel Shen in Shanghai; and Julie Zhu in Hong Kong; Editing by Gerry Doyle

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