China’s Nasdaq

China’s STAR market debut offers a good risk management lesson

Individual stock market investors should be aware of the need to manage risks after wild swings in share prices during the first two days of trading on China's new Nasdaq-style board.

It was the epoch of belief, it was the epoch of incredulity.

This sentence is the best summary of the first trading day of the Shanghai Stock Exchange’s STAR Market, also known as the technology innovation board.

Many stock market investors in China experienced the most exciting day in their investment careers as they saw shares skyrocket at STAR market’s launch on Monday.

A total of 25 companies made their debut on what is known as China’s Nasdaq, referring to the technology-heavy board that currently hosts some of the fastest-growing companies in the US.

The STAR market got off...

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