Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Luckin Co-Founders Hand Over Shares to Lenders After Defaulting on Half Billion Dollar Loan
Huawei Pay Debuts in Singapore
Credit Suisse Drops Off WeDoctor’s Planned Hong Kong IPO
LATEST
Will iQiyi be the Next Luckin?
China Gives Final Key Approval for German Chip Giant Infineon to Buy U.S. Rival
Japan Emergency Decree Shuts Headquarters, Nintendo Flagship
Tencent Becomes Majority Shareholder in Chinese Game Live-Streamer Huya
Luckin Co-Founders Hand Over Shares to Lenders After Defaulting on Half Billion Dollar Loan
Huawei Pay Debuts in Singapore
Credit Suisse Drops Off WeDoctor’s Planned Hong Kong IPO
Subsidies for Residential Solar Projects Slashed but Capacity Still Set to Grow
58.com Shares Jump on Buyout Offer
Toyota and BYD Launch EV Joint Venture in China
Alibaba’s Lazada Briefly Stops New Singapore Grocery Orders
Data from Alipay Shows Signs of Consumption Returning as Some Virus Restrictions Eased
Countries Across the World Start to Suspend Food Exports to Secure Domestic Supplies
SASAC Gives Birth to New Asset Manager
China Mobile and Ubitus Team Up to Attract 5G Gaming Subscribers
China Weighs Cuts to Electric-Car Subsidies It Just Extended
Carmaker BYD Profit Plunges in 2019
Huawei and ZTE Win Nearly 90% of China Mobile’s Latest 5G Contracts
Cash-Burning Pinduoduo Raises $1.1 Billion to Finance Growth
Tesla’s Spoiled End-of-Quarter Push Does a Number on Deliveries
Three Billionaires Created on China's New Tech Board

By Bloomberg / Jul 23, 2019 11:20 AM / Business & Tech

Photo: VCG

Photo: VCG

China’s much-hyped new trading venue for technology stocks started with a bang on Monday, creating three new billionaires.

The 25 companies that debuted on the so-called Star market rose an average 140% in the first trading day, making billionaires of the presidents of a battery-test equipment maker and an LCD-display manufacturer, as well as the chairman of a firm that produces artificial intelligence technology for smartphone cameras.

Rising personal fortunes thanks to the new Nasdaq-style venue could go some way toward helping China keep the next Alibaba Group Holding Ltd. at home rather than seeing its fastest-growing companies head to New York or Hong Kong for their initial public offerings. Key to the market’s long-term success, however, will be sustaining gains, said Shen Zhengyang, an analyst at Northeast Securities Co.

Representatives of Suzhou HYC Technology Co., Zhejiang HangKe Technology Inc., Arcsoft Corp., Ningbo Ronbay New Energy Technology Co. and Beijing Tianyishangjia New Material Corp. couldn’t be reached for comment.

Anji Microelectronics Technology (Shanghai) Co. led all stocks on the Star market Monday, closing up 400%. About 48.5 billion yuan ($7.1 billion) of shares traded on the new venue, roughly 13% of the day’s turnover for the Shanghai and Shenzhen exchanges.

The first-day surges were thanks to Star market rules that are different from other venues in China. The new board is a testing ground for regulators, who have waived restrictions on valuations and welcome unprofitable companies, as well as shares with unequal voting rights. Stocks on the Star market have no daily price limits for the first five trading days, followed by a 20% daily cap in either direction.

Tom Zhou, a fund manager at Shanghai River East Asset Management, said he expects initial volatility as investors try to figure out fair valuations, but said the focus will eventually move to assessing whether the companies’ growth potential can support their share prices.

“If not, we will see share value retreat,” Zhou said.

Related: China's New Nasdaq-Style Board Takes Off in Roller-Coaster Debut

Share this article
Open WeChat and scan the QR code