China stocks end higher as new start-up listings surge

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SHANGHAI: China stocks closed higher on Monday, with strength seen in the tech-heavy start-up board ChiNext, as investors cheered Beijing's continued market reforms to foster its tech strength.

The blue-chip CSI300 index rose 0.8% to 4,755.85, while the Shanghai Composite Index added 0.2%to 3,385.64.Shares of 18 companies surged on their ChiNext debut on Monday, kicking off a historic reform that will see Shenzhen officially challenge Shanghai for tech listings, while adding fuel to a"technology war" with the United States.

Based on Shanghai's year-old STAR Market, the broadening IPO reform will help strengthen Chinese markets' appeal at a time when the country's tech firms face growing U.S. scrutiny and risks of being delisted from U.S. markets. "For the long term, the registration-based IPO system is an inevitable part of the market's institutional arrangements, whose advantages outweigh disadvantages and which could help enhance value-investing philosophy by directing resources to more quality assets," he added.

 

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