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SHANGHAI (Reuters) - Chinese companies and investors are lining up in spades to take part in Shanghai’s new Nasdaq-style tech board, with a groundswell of patriotic support surging further after the U.S. blacklisting of telecom firm Huawei inflamed trade tensions.
In the two months since the application period began, 120 firms - many in industries such as semiconductors, artificial intelligence and biotech - have sought permission to list, aiming to raise a combined $16 billion.
On the investment side, there’s been a rush to launch tech-focused mutual funds, with about 100 currently seeking approval, data from the China Securities Regulatory Commission shows. Since late May, 12 such funds targeting the new board, each with a fundraising cap of 1 billion yuan ($145 million), have been launched.
The first mainland China exchange-run board to not make profitability a listing requirement, Shanghai’s Sci-tech Innovation Board was announced suddenly by President Xi Jinping in November and is widely seen as Beijing’s latest move to become self-sufficient in core technologies such as chips.
Those ambitions, highlighted by the government’s “Made in China 2025” campaign launched four years ago, have now taken on added urgency as the trade war with Washington and anxiety about its impact escalate.
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