Warning lamps illuminated in red – the now, open China’s ”Nasdaq” – Svenska Dagbladet

Shenzhenbörsen merged with the hong kong and opens up a whole new market. Photo: Magnus Hjalmarson Neideman

SHENZHEN eager anticipation and secrecy dominate in the chinese Shenzhen after two years of waiting and preparation goes towards its crescendo on Monday morning. It is so far perhaps the biggest step in opening China’s market to the outside world is about to be taken: Shenzhenbörsen, with its 880 innovative listed companies, shall be made available to the outside world. And on the way to the image of chinese technology companies is changing in the world, according to hope.

” Everybody knows that chinese companies have a bad reputation internationally. But in Shenzhen, it is about to change, says Inovance head of investor relations, Wu Nini.

Inovance head of investor relations, Wu Nini. Photo: Magnus Hjalmarson Neideman

She accepts in a surprisingly unassuming office building in the outskirts of Shenzhen’s city centre, a few kilometres to the north of the grand High Tech Park, where thousands of technology companies fighting for the place in the ever-growing forest of skyscrapers.

It may not be visible here – but Shenzhen is a city that has undergone an almost unprecedented transformation in recent decades. The former small fishing village with 30,000 inhabitants has grown to an enormous city like that is home to over 15 million people, then around 1980 it became home to the country’s first special economic zone.

today is Shenzhen an it hub in the world-class which has been named "China’s Silicon Valley" – and raises coveting from investors in the west.

“It’s incredibly exciting, so much is happening in Shenzhen, not least in the it and environmental technologies,” says Peter Elam Håkansson, managing director at asset manager East Capital, which primarily focuses on investments in Russia and Asia.

the Actual stock market is in a remarkable architectural creation of the city’s financial district. The huge roof is spread over the city finanselit that moves in kavajklädda stim over the square.

In Shenzhen stock exchange building is high with two different statues of the bulls outside. Photo: Magnus Hjalmarson Neideman

This is release around the connection to Hong kong has been in a class that perhaps only China can exhibit. SvD has been denied both the access and the comments from the spokespersons with a reference to "the delicate situation" – a response that can be seen as significant for the lack of transparency as players on the chinese market are often accused of.

And certainly there are warning signals for those who want to invest their money in Shenzhen. The lack of transparency is a. The extreme volatility – which is often explained with the lack of knowledge of the shares of the majority of the shareholders on the Shenzhen stock exchange – is another. The chinese state’s involvement in the market is a third.

the Swedes also have in recent time, become generally more skeptical of the investment in China. Since January 2015 has, for example, avanza’s customers sold Kinafonder for 2 billion, and, instead, bet on the broader Asienfonder.

But Shenzhen is still, according to most analysts far more interesting than the stock market that was up against Hong kong two years ago: Shanghaibörsen. In Shanghai dominates the large, state-owned chinese companies. On Shenzhenbörsen is every five companies, an information technology company, figures which led to the nickname "China’s Nasdaq".

Among the listed companies there is videoövervakningsföretaget Dahua, one of the world’s giants in the field. Here are laserjätten He’s Laser, which is leading in China for the laser cutter and also has a very strong international position.

the Company Inovance is one of the companies that are now located on the Shenzhenbörsen and will be able to be traded internationally when Shenzhenbörsen be connected with hong kong. They have their head office in Shenzhen and manufactures servo motors, and other electrical control systems. Photo: Magnus Hjalmarson Neideman

Here is Wu He employer: it company Inovance that at only 12 years developed into a chinese leader in the automation and compete in the chinese market with giants such as ABB and Siemens when it comes to control systems, such as elevators, wind power, escalators or motors in electric cars. Inovance, which is considered to play a major role in China’s transition to alternative energy sources, is often highlighted as one of the favorites of international investors.

But it is not just investors who hope to make the cut when the Shenzhen welcomes the world on Monday – even the listed companies themselves are hoping for a big win when China opens the door to Hong kong.

the Stock market’s notorious volatility will decrease with more long-term international investors – and the world’s knowledge of chinese companies are set to increase, says ir head Wu Nini on Inovance.

– When foreign investors invest in us, they will also learn more about our company. It will automatically lead to more customers and more international sales, we are very happy for it, ” she says.

But at the same time will not this to change overnight, says Wu Nini. The negative image of chinese technology companies will likely to keep up with the several years, and put a spanner in the wheels for those who want to invest abroad,she says.

– It is the reason why we do not have any plans to grow abroad in the next three to five years. We want to make our products even better before we take that step, to show the world that China can also create advanced technology. But in the long term, our strategy is to replace the japanese, american or european competitors, said Wu Nini.

Photo: Magnus Hjalmarson Neideman

China does not release all control over Shenzhen

Even if Shenzhenbörsens connection to Hong kong on Monday morning is a major step towards making China’s growing it-sector available to the outside world, release the government does not completely control. Trade from Hong kong to Shenzhen is limited to 13 billion yuan daily, the equivalent of about 17.5 billion. In the other direction is the limit of 10.5 billion yuan, the equivalent of sek 14 billion.

Not done all the shares available to private investors. Access to the shares on the stock exchange Component Index and the Small/Mid Cap innovation Index – the latter with a market value equivalent to around sek 8 billion – is open to all. But the companies on the stock exchange’s ChiNext board will only be made available to professional investors, officially declared by its highly speculative nature.

Shenzhenbörsen are notorious for their volatility – in 2015 it was one of the world’s strongest stock exchanges, with an increase of 63 per cent. In the years, it has declined 8 percent.