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ChrisYunker
Growth of shares on the new site reached 520%, which exceeded expectations of veteran investors, reports Reuters.
The first 25 companies that made their debut on the stock exchange more than doubled their IPO prices on the STAR Market, which is managed by the Shanghai Stock Exchange.
Trading in semiconductor manufacturer Anji Microelectronics Technology (Shanghai) Co Ltd was twice halted for a short time - first after rising by 30% and then after jumping by 60% of the opening level. Nevertheless, Anji shares rose 520% of the IPO price during the morning session. By noon, the papers slowed down to 415% of the IPO price.
Sharp stock price fluctuations were expected in part because of softer trading rules. STAR Market places no restrictions on share prices during the first five days of trading in company stocks, while other Chinese exchanges have a limit of 44%.
During subsequent trading sessions, the new market will allow stocks to rise or fall to a maximum of 20% per day. On other exchanges, the daily limit of fluctuations is set at 10%.
The index tracking the STAR Market will be launched on the 11th trading day after the debut of the 30th company on the exchange.
The idea of the site is to encourage investment in Chinese technology innovators, provide resources for their development, and create incentives for listing within the country.
The first stock exchange in mainland China, which does not make profitability a listing requirement, is widely regarded as Beijing’s next step towards self-sufficiency in core technologies such as production of chips.
source: cnn.com
The first 25 companies that made their debut on the stock exchange more than doubled their IPO prices on the STAR Market, which is managed by the Shanghai Stock Exchange.
Trading in semiconductor manufacturer Anji Microelectronics Technology (Shanghai) Co Ltd was twice halted for a short time - first after rising by 30% and then after jumping by 60% of the opening level. Nevertheless, Anji shares rose 520% of the IPO price during the morning session. By noon, the papers slowed down to 415% of the IPO price.
Sharp stock price fluctuations were expected in part because of softer trading rules. STAR Market places no restrictions on share prices during the first five days of trading in company stocks, while other Chinese exchanges have a limit of 44%.
During subsequent trading sessions, the new market will allow stocks to rise or fall to a maximum of 20% per day. On other exchanges, the daily limit of fluctuations is set at 10%.
The index tracking the STAR Market will be launched on the 11th trading day after the debut of the 30th company on the exchange.
The idea of the site is to encourage investment in Chinese technology innovators, provide resources for their development, and create incentives for listing within the country.
The first stock exchange in mainland China, which does not make profitability a listing requirement, is widely regarded as Beijing’s next step towards self-sufficiency in core technologies such as production of chips.
source: cnn.com
