Photo Credits: Bloomberg

The first batch of the candidates of China to take part in its version of the tech-focused Nasdaq is an uninspiring brunch. Shanghai Science and Technology Innovation Board had called for applications to be listed in the board. The board had received a total of nineteen applications out of which nine companies have been vetted to be listed in the Shanghai Science and Technology Innovation Board.

However, they are quite tiny and are planning to raise just $ 1.6 billion that too in a combined effort.  This minimal amount of $1.6 billion is only a fraction of the $5.4 billion that Xiaomi Corp. had taken when it sold its share to Hong Kong last year. The investors of this endorsement include names of few renowned companies such as Wuhan Kequian Biology Co., a maker of animal vaccines; Amlogic Shanghai Co., a famous distributor of electronic parts and Jiangsu Berrien Robot System Co, a renowned producer of automation equipment. But there are no signs of the glamour candidate such as SenseTime Group Limited, the world’s biggest artificial intelligence startup, Ant Financial, the payments affiliate of the giant e-commerce Alibaba Group Holding Limited and Bytedance Ltd., the developer of the popular TikTok video app that are famous worldwide.

Had the primary objective of Shanghai technology board had been to get ion completion and reach a step over to Alibaba and Xiaomi to sell their shares at home rather than deserting china to list in Hong Kong or New York, then Shanghai technology board still has a lot to prove in such a case.

Source: Bloomberg

The Shangai market still poses a great threat to Hong Kong which is considered to be the world’s largest IPO fundraising venues in the year 2018. New York has also been a favored listed destination in for chins new economy firms.