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BUSINESS A25
Monday 28 September 2015

Nasdaq center aims to build China: Weakened but still growing

relationships with startups JOE McDONALD ago the model based on Business at Tiantian Express,
AP Business Writer trade and investment that a delivery company in the
BRANDON BAILEY BEIJING (AP) — President Xi delivered three decades eastern city of Qingdao,
AP Technology Writer Jinping is visiting the United of growth had run out of has tripled over the past
SAN FRANCISCO (AP) — Nasdaq has long been States as leader of a China steam. Communist leaders year, according to its op-
known as the “tech-heavy” stock exchange, where whose image of economic told the public to prepare erations manager, Sun
some of Silicon Valley’s best-known companies have success has taken a beat- for wrenching change. Qiang. He said its work-
gone to sell shares. Now, as it faces stiff competi- ing. A falling growth rate also is force doubled in size to
tion from rival exchanges to lure the next hot IPO, it’s Stock market turmoil and a symptom of China’s suc- 150.
reaching out to business startups before they go pub- a surprise currency de- cess. Its economy passed “There is still big room for
lic. valuation fueled fears of a
New York-based Nasdaq, through an affiliated foun- Chinese slump with global A Chinese couple chat as a model poses next to a Mercedes-
dation, is opening what it calls an “Entrepreneur- repercussions. But even
ial Center” Thursday in a trendy commercial district a weaker China still is on Benz AMG GT S model on display during a promotional event
south of San Francisco’s Market Street. It’s promis- track to turn in some of the
ing businesstraining, mentoring and networking op- world’s strongest growth at a shopping mall in Beijing Wednesday, Sept. 23, 2015. Stock
portunities for early stage startup founders — maybe this year. And some indus-
even the next Mark Zuckerberg or Larry Page. tries including retailing are market turmoil and a surprise currency devaluation fueled
“We want to support amazing entrepreneurs, who expanding at double-digit
may be starting a company today or their next three rates. fears of a Chinese slump with global repercussions. But even
companies down the line, who will remember the China’s 5-year-old slow-
things they were taught as part of the Nasdaq com- down is self-imposed as the a weaker China still is on track to turn in some of the world’s
munity,” said Nicola Corzine, a veteran startup inves- ruling Communist Party tries
tor who will operate the center as its executive direc- to steer the world’s sec- strongest growth this year. (AP Photo/Andy Wong)
tor. Nasdaq executives say they have a long tradition ond-largest economy to
of working with young companies, and the new cen- more self-sustaining growth Japan’s in size in 2009 and growth,” said Sun.
ter is open to entrepreneurs in other sectors besides based on domestic con- since then has added an- Faith in China’s ability to
tech. Still, it’s no coincidence the center’s in a region sumption. Steel and con- other 1 ½ Japans to its surge ahead while the rest
rife with new tech startups. Facebook, Google and struction suffered as the output. That means China of the world struggled was
Apple are all traded on Nasdaq. party put the brakes on an needs to generate twice shaken by the collapse of
The move comes as Nasdaq’s chief rival, the New investment boom, but as as much additional eco- a stock price bubble. Yet
York Stock Exchange, has increased its outreach to job creators they already nomic activity to keep the economic meltdown
the tech sector in recent years and has lured some have been supplanted by growing at the same per- many feared never mate-
high-profile startups like Twitter, which held its initial e-commerce, tourism and centage rate. rialized.
public offering on the NYSE in 2013. Twitter’s decision other service industries. Some forecasters suggest That was due to the fact
to list on the NYSE came after Facebook’s debut on “Those touting China’s sud- Beijing overstates growth that, unlike stock markets
Nasdaq in May 2012 was marred by technical glitch- den fragility are either ex- and the true rate might be in the United States or Eu-
es that tarnished the exchange’s reputation. aggerating current prob- as low as 5 percent. Even rope, China’s has few links
“Your competitor always wants to make advances in lems or have entirely missed at that level, China will add to what communist leaders
your area of strength, and we also make advances in the slowdown of the past almost one Indonesia to its call “the real economy.”
areas that may not have been our strength 10 years several years,” said China economy this year. The biggest publicly trad-
ago,” said Bruce Aust, a vice chairman at Nasdaq Beige Book, a U.S. research Weakness in shipbuilding, ed companies are state-
who is also president of the new center. As an ex- firm, in a report this week. construction and heavy owned, so traders make
ample, he said Nasdaq is now home to a number of It said China’s image might industry are signs of prog- decisions based on official
airlines that might have chosen the NYSE in the past. be “more thoroughly di- ress in Beijing’s campaign policy and availability of
“Nasdaq is all about growth companies,” Aust said, vorced from facts on the to transform a nation of credit.
while downplaying concerns about the rival ex- ground” than at any time farmers and factory work- Only about 7 percent of
change. “So we feel pretty good about our position.” since it began conduct- ers into a consumer-driven Chinese households own
Silicon Valley is home to a number of tech “incuba- ing surveys of the country’s economy and creator of stocks, which is a frac-
tors” and other programs that support new startups, economy five years ago. technology. tion of levels in the United
sometimes in exchange for equity. Aust said the new Xi started his U.S. visit Tues- E-commerce, restaurants States, Europe or Japan, so
center will work with those programs while offering day with a stop in Seattle and other services for Chi- losses had little impact on
unique opportunities of its own, such as mentorships to meet business leaders na’s own consumers ac- consumer spending.
or informal classes taught by executives at success- and visit Boeing Co. and counted for 41.7 percent After its plunge, the Shang-
ful Nasdaq companies. Silicon Valley law firm Wilson Microsoft Corp. On Thurs- of employment in the lat- hai Composite Index still
Sonsini, which advises a number of tech companies, day, he goes to Wash- est quarter, well ahead of is up 42 percent from one
is one of several sponsors. ington to meet President manufacturing’s 34.7 per- year ago, underpinned by
There’s no charge for entrepreneurs to participate, Barack Obama. cent, according to gov- a multibillion dollar govern-
but they’ll be screened for at least two references This year, Beijing is expect- ernment data. ment intervention to sup-
from advisers, fellow entrepreneurs or even univer- ed to report growth of 6.5 Retail sales grew by 10.4 port prices. The Standard
sity professors, Corzine said. Programs are also open percent to 7 percent. That percent in August. E-com- & Poor’s 500 index of U.S.
to students or recent graduates with ideas for a is down from last year’s merce grew at twice that stocks is down 4.4 percent.
new business. 7.3 percent but more than rate, generating new jobs Exports are far weaker than
The new center fills 13,000 square feet of remodeled double the 3.1 percent in logistics and delivery ser- expected, raising the risk of
space that includes meeting areas, a media training forecast for the U.S. by the vices. job losses and unrest.q
studio where founders can develop videos to pro- International Monetary
mote their companies, and a coffee shop for casual Fund. Only India is expect-
networking. ed to grow faster at 7.5
In recent years, some high-profile tech startups like percent.
Uber, Airbnb and Snapchat have delayed going The slowdown came as
public and opted to continue raising money from no surprise: Economists
venture capitalists and other private sources.q warned nearly a decade