Most stocks surge on China's Star Market debut
SHANGHAI China's new Nasdaq-style board for home-grown technology firms started trading yesterday, with most of the stocks surging in their debut.
Most of the first batch of 25 companies - ranging from chipmakers to biotech firms - climbed quickly in early trade on the Star Market, operated by the Shanghai Stock Exchange (SSE).
Zhangjiang Hangke Technology was the first company to hit an upper-limit circuit breaker designed to temporarily halt trading in a bid to calm frenzied buying, climbing 30 per cent from the market open.
Suzhou Harmontronics Automation Technology , however, triggered its circuit breaker in the opposite direction, falling 30 per cent from the market open.
SSE 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 board.
Modelled after Nasdaq and complete with a US-style IPO system, Star may be China's boldest attempt at capital market reforms yet. It is also seen as being driven by Beijing's ambition to become technologically self-reliant as a prolonged trade war with Washington catches Chinese tech firms in the crossfire.
Even veterans of China's notoriously volatile stock markets had braced for a wild opening day on the new board, after initial public offerings were oversubscribed by an average of 1,700 times among retail investors. - REUTERS