In this June 13, 2019, photo released by Xinhua News Agency, guests, from left, Yi Huiman, chairman of China Securities Regulatory Commission, Liu He, vice premier, Li Qiang, top party official of Shanghai, and Ying Yong, Shanghai's mayor, celebrate the launch of the SSE STAR Market, previously referred to as the Shanghai science and technology innovation board in Shanghai. Trading is expected to start Monday, July 22, 2019 on the Chinese stock market for high-tech companies that play a key role in official development plans that are straining relations with Washington. (Fang Zhe/Xinhua via AP)

China launches STAR, tech stock market to boost industry

July 18, 2019 - 1:25 am

BEIJING (AP) — Trading starts Monday on a Chinese stock market for high-tech companies that play a key role in official development plans that are straining relations with Washington.

Regulators have approved 25 companies in information technology and other fields seen by communist leaders as a path to prosperity and global influence for the Shanghai Stock Exchange's STAR Market.

The market, modeled on the U.S.-based NASDAQ, reflects the ruling Communist Party's desire to channel private capital into its development plans. It gives small Chinese investors a chance to buy into tech industries that have mostly turned to Wall Street to sell shares.

The STAR Market will raise money for industries some American officials see as a competitive threat, though it has no direct link to Beijing's tariff war with President Donald Trump.

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