Investors are set to gain as China is pushing for new ways that private sector money can fund its domestic companies, according to Helen Zhu, head of Chinese equities at BlackRock.
Her analysis comes amid Beijing's plans to introduce a new stock board for start-ups in Shanghai, which is being billed as a pilot program to test more market-oriented measures before rolling them out in China's other stock exchanges. The new science and technology innovation board was announced by President Xi Jinping in November and is expected to be launched by June.
"It's really opening the door to a very new and promising financing channel over the medium to longer term. And I think people will read that positively. I think the asset prices will respond accordingly as well." Zhu said.