A new Nasdaq-style board was launched in the Shanghai Stock Exchange. It might presage how China's stock markets look in the future.
eetasia.com, SHENZHEN, China, Aug. 12, 2019 –
Last month China launched a new Nasdaq-style science and tech board, known as "STAR market," in the Shanghai Stock Exchange. Those initially listed were 25 Chinese high-tech companies. STAR market, set up in a short nine months, is a capital "test field" for the technology industry.
Chip companies have skyrocketed, with all 25 stocks doubled
Of the first 25 companies listed, computer, communications and electronic equipment manufacturers held the lion's share. They include eight specialty equipment makers covering chip, semiconductor, optical simulation, IoT and smart manufacturing.
Six in the group are chip and semiconductor-related companies. They include Anji Microelectronics Technology (Shanghai), AMEC , Montage Technology, Suzhou HYC Technology, Raytron Technology and Espressif Systems (Shanghai).
On the first day of trading, the whole market was soaring high at 9:30am, although some of the 25 stocks tanked by 30% from their opening prices. After a temporary suspension trading resumed, but their stocks went down even further. By 10:00am, however, the losers reversed their course and the stock prices of all 25 companies ended up more than doubling.