Chinas STAR Market to Launch Segment for Pre-Profit Growth Companies: Boosting Innovation and Technology

China's Securities Regulator Announces Plans to Launch a New Segment on Shanghai's STAR Market for Pre-Profit Growth Companies SHANGHAI (Reuters) - The China Securities Regulatory Commission (CSRC) announced on Wednesday plans to establish a new segment on Shanghai's tech-heavy STAR Market to host pre-profit growth companies. The move comes amid escalating tensions between China and the United States in areas ranging from trade to technology. The "growth segment" is intended to support innovation and provide strong backing for technology giants and small and beautiful start-ups, according to Wu Qing, chairman of the CSRC. He vowed to improve China's capital markets to help the country's ramped-up innovation in the backdrop of big changes in global trade and economic order. According to guidelines published on the CSRC's website, companies with "major technology breakthroughs, bright commercial prospects, and heavy investment in research and development" can list in the new segment. The CSRC will also create a mechanism to introduce seasoned, professional institutional investors to the STAR Market, which was set up to help China achieve technology independence and supremacy. In addition, the CSRC said it would support listing of companies with frontier technologies in sectors such as artificial intelligence and aerospace. This move is also happening as Chinese companies are lining up to sell shares publicly in Hong Kong, which is wooing listing candidates in a rebounding stock market. The new segment is expected to provide a platform for Chinese companies to raise capital and grow their businesses, while also helping to foster innovation and technological advancement in the country. The CSRC's move is seen as a positive step towards strengthening China's capital markets and supporting its technological development.