INSUBCONTINENT EXCLUSIVE:
surging and drawing attention away from the main board
All of the first batch of 25 companies - ranging from chip-makers to biotech firms - more than doubled their already frothy IPO prices on
the STAR Market, operated by the Shanghai Stock Exchange.Trading in Anji Microelectronics Technology (Shanghai) Co Ltd, a semiconductor
firm, was halted twice as the company's shares hit two circuit breakers - first after rising 30 per cent, then after climbing 60 per cent
from the market open - designed to calm frenzied buying.By the midday break, Anji shares had leapt 415 per cent from their IPO price.Suzhou
Harmontronics Automation Technology Co Ltd, however, triggered its circuit breaker in the opposite direction, falling 30 per cent from the
market open, before reboundingBut by midday the company's shares were still 113 per cent higher than their IPO price
Monday's spiralling share prices and high volatility on the STAR Market were anticipated as investors chased the new board, said Zhu
Junchun, chief analyst with Lianxun SecuritiesInvestor focus on the STAR Market in the short term could weigh on the main board in terms of
liquidity and attention, he said
That effect was clear on Monday, with the benchmark Shanghai Composite Index dipping 0.57 per cent by midday, and the blue-chip CSI300 index
trading flatSSE said that an index tracking the STAR Market will be launched on the 11th trading day following the debut of the 30th company
on the boardModelled after Nasdaq, and complete with a U.S-style IPO system, STAR may be China's boldest attempt at capital market reforms
yetIt is also seen driven by Beijing's ambition to become technologically self-reliant as a prolonged trade war with Washington catches
Chinese tech firms in the cross-fire
Even veterans of China's notoriously volatile stock markets had braced for a wild opening day on the new board, after initial public
offerings (IPOs) were oversubscribed by an average of about 1,700 times among retail investors.Get Breaking news, live coverage, and Latest
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