China's STAR: A new gold mine for veteran investors

Editor's Note: Trading in shares of the first batch of 25 companies listed on the technology-focused STAR Market of the Shanghai Stock Exchange will officially start on Monday. The following article discusses the implications of the launch of the new board, which analysts say is a milestone event in the development of China's capital market.

For the past few centuries, technology has changed our world. Today, almost no one washes his or her own clothes by hand. We send a real-time video across the Pacific Ocean in seconds. However, technology is not only created by scientists and technicians. Technology is also developed because of efficient capital markets.

Take Silicon Valley as an example. Silicon Valley is one of the world's most prestigious science and technology centers. Its history of growth comes not only from the innovation of new technologies such as personal computer, internet, and online search engine. It also comes from the unique capital structure that binds the personal financial well-being of its scientists and technicians to the business success of its startups.