Thanks to the booming market and the relative relaxation in regulations, it is expected that home grown tech companies will want to invest in Chinese economy, instead of heading to America in search of better prospects.

In a bid to lure home grown tech firms into the Chinese market, the government successfully implemented several initiatives which also included interest rate cuts, improving the domestic regulations to make them more favorable and a lot more. As a result of this, the market is finally booming. With this, analysts are confident that companies will come back to list their shares in the Chinese stock market instead of being tempted by the prospect of earning better profits by going to the American exchange. A detailed report on Wall Street Journal confirms this development. Early stage investors have also pointed out that there has been a significant increase in the interest of companies in China who want to list their shares in the national stock exchange.

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A report on Techreformer pointed out that the new reforms are making it easier for Chinese companies to explain their inventory to investors and therefore increasing their prospects of earning more profits. A good example of this success can be seen in the growth of companies like Beijing Baofeng Technology, whose shares skyrocketed by a massive 3600 percent and more, ever since it was listed on Chinese stock market in March 2015.

Another report on WSJ claims that these favorable market conditions are attracting several companies that have already listed their stocks in American markets. In fact, since Chinese laws ban foreign owned companies, when it comes to Internet content, many of the contenders have gone independent simply so that they can successfully enlist themselves in the regional stock market.

This trend also indicates the government's determination to reverse the economic slowdown by shifting focus to internet and technology related firms. The aggregate figures show that the Shanghai composite index has managed to grow by a massive 43 percent, this takes into account the 6.5 percent fall on Thursday.

For Chinese investors, as of now, the primary focus is on start-ups. 

TagsChina tech news, China market news, technology