Post by : Jyoti Gupta

Photo:Reuters

China has decided to let tech startups that are not making a profit yet sell their shares to the public again. This change is happening after two years when it was very hard for new companies to get approval to join the stock market. The goal is to help China become stronger in technology and rely less on other countries, especially the US.

The head of China’s stock market regulator said that these new rules will allow young tech companies to join special boards in Shanghai and Shenzhen, even if they are not making money yet. These boards are called the STAR Market and ChiNext. Before, only companies that were already making a profit could join, but now even those still working on new ideas can apply.

This move surprised many investors because the government had made it very hard for companies to go public recently. The new plan hopes to help businesses that spend a lot on research and have big ideas for the future, like those working on artificial intelligence, airplanes, and new tech for flying at low heights.

To keep things safe, only experienced investors will be allowed to buy these new stocks at first. The government also wants to make it easier for companies to raise money and for people to invest in these tech boards. This is all part of a bigger plan to make China’s stock market and tech industry stronger and more innovative.

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