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Stocks climbed 326% on the first day of trading for Shanghai's new science and technology equity market, as investors scrambled to acquire the top 25 companies listed on the Star Market, leaving other stocks Chinese prices up and down. dry.
Star has been touted as China's response to the Nasdaq and Beijing hopes that this will encourage investment in national technology innovators, ensuring that they have the resources to grow. Monday's first transactions gave a clear recognition to this notion, with the first shares traded in a range of 52% to 326% above their starting price in the initial public offerings of the companies.
The new board is unique in China because of the incentives it offers to high-tech companies, including two-clbad shares preserving the founders' control over operations. Investors are excited about the possibility of betting against individual stocks – a practice banned elsewhere in China – and less stringent limits on daily price movements in Shanghai and Shenzhen, where stocks can only move 10 % in both directions on normal trading days.
Indeed, companies such as Anji solar cell module manufacturer and chip maker Montage Technology grew 326% and 201% respectively, with market operators taking full advantage of the fact that the Star chart has no limit to the fluctuation of the price of the shares during the first sale of shares. five trading days.
Gains for new tech stocks on Star seemed to dampen enthusiasm for other Chinese stock markets, with the Shanghai Composite index falling by up to 1%.
"The new Star board has likely resulted in a cash leak in the lead board," said Gerry Alfonso, director of Shenwan Hongyuan Securities. At the same time, the benchmark in Shenzhen, which was traditionally the hotspot for high-tech companies in China, fell by 1.3%.
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