China to launch market-making on tech-focused STAR Market on Monday

SHANGHAI, Oct 28 (Reuters) – China’s Nasdaq-style STAR Market will officially launch market making on Monday, in a bid to make the tech-focused board more liquid, vibrant and resilient, the Shanghai Stock Exchange said.

The first batch of qualified market markers on STAR will start trading next week, which will cut investors’ trading cost, and improve pricing efficiency, the bourse said in a statement on its website.

The STAR Market, home to some of China’s biggest chipmakers, biotech companies and high-end manufactures, is tasked with funding Beijing’s tech innovation amid growing Sino-U.S. rivalry.

The Shanghai Stock Exchange said it will continue to improve market mechanisms to help China achieve tech independency and self-sufficiency.

Regulators have approved 14 brokerages as the first batch of market makers, which actively quote in stocks, providing liquidity and depth to the market.

They include Industrial Securities, Guotai Junan Securities, and Sinolink Securities.

(Reporting by Shanghai Newsroom; Editing by Toby Chopra)