Is China s version of the NASDAQ Science and Technology Innovation Board worth investing in the medi

Mondo Finance Updated on 2024-01-19

China's A-share science and technology innovation board is mainly oriented to the world's scientific and technological frontiers, the main battlefield of the economy, and the major needs of the countryServe in line with the national strategy and break through key core technologiesand scientific and technological innovation enterprises with high market recognition. Focus on supporting the new generation of information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, biomedicine and other high-tech industries and strategic emerging industries, promote the deep integration of the Internet, big data, cloud computing, artificial intelligence and manufacturing, lead high-end consumption, and promote quality, efficiency and power change.

Why is the Science and Technology Innovation Board also called "China's version of NASDAQ"?This is mainly due to the fact that the establishment background, object-orientedness, listing conditions and review system are basically similar.

NASDAQ was founded in the 70s of the 20th century, when technology-intensive industries in the United States were booming, "Silicon Valley" was born, venture capital was rising, and a number of high-tech small and medium-sized enterprises sprung up. These companies are in urgent need of financing, but often because they do not meet the threshold for listing on the New York Stock Exchange, they can only conduct ** transactions in the over-the-counter market. In order to standardize transactions and enable more small and medium-sized enterprises to go public and raise funds, NASDAQ came into being.

The Science and Technology Innovation Board was established in 2019, and in the past 10 years, China's Internet tide has given birth to a number of outstanding technology companies represented by BAT. However, due to institutional reasons, these companies choose to go public overseas. Innovative and technology-based companies require huge R&D expenses in the early stage of growth, and the profit timeline is long, making it difficult to meet the listing threshold of A-shares in the initial stage. The launch of the STAR Market has given more start-up technology companies the opportunity to go public.

The Nasdaq index was 100 points when it was first established, and it was the same at first, with the lowest point around 54 points, and then it went all the way up, with the highest point in 2021 being 16,212 points, and now it is also 14,305 points, which has also increased 143 times since its listing.

The Science and Technology Innovation Board 50 Index, which was 1,000 points at the beginning of its listing, rose to 1,726 points at the highest, and is now halved to 867 points, but as of November 21, more than 30 ETFs related to the Science and Technology Innovation Board have received a net inflow of more than 95 billion yuan since the beginning of this year, and it is expected to exceed 100 billion yuan today.

The above figure is a 50-week chart of science and technology, and the trading volume continues to expand at the bottom of history, and it can also be seen that the inflow of funds is particularly obvious.

Technically, the weekly and monthly lines have bottomed out from the warning signal, and the weekly downward trend line has broken through, and now belongs to the process of stepping back to confirm, and the weekly indicator is double gold, to the less band ** is about to begin.

On the whole, whether it is the policy aspect (National Strategy)., or technical investment, the science and technology innovation index here is worthy of the medium and long-term layout. Personal advice, just for reference!Welcome to leave a message and communicate!

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