MILAN, Jul 23 (Class Editori) -- Sprint start for the Chinese Star Market, the new market run by the Shanghai Stock Exchange and dedicated to excellence in science and technology, which aims to be the Asian response to the Nasdaq.
On the day of the debut he scored up to 520%, as in the case of the module maker for solar panels Anji, while the worst performance of the first day was recorded by Harbin Xinguang Optic-Electronics Technology, which however scored a 84% rise on the IPO price, closing the day at 70.17 yuan.
The 25 companies present in the first session of the exchanges, which mostly produce chips, have raised a total of 37 billion yuan, equal to 4.8 billion euros, recording an average increase in quotations of 140%. As reported by Cnbc, another 150 companies are ready to get listed. Among the latter, however, there is no trace of giants like Tencent or Alibaba, who have chosen to get listed in New York and Hong Kong, due to the greater dynamism of exchanges and the international visibility. Most of the companies that debuted are active in new generation information technology (big data, IOT), advanced machinery and bio-tech.
For the Chinese market, such strong price swings as those made yesterday on the Star Market are no exception. The Shanghai and Shenzhen stock exchanges in the first day of trading in fact allow increases of up to 44% and in subsequent sessions the performance is limited to 10% upwards or downwards. No restrictions on the Star Market are envisaged in the first five days.
The new Chinese list will also allow the listing of shares of different classes, which are generally used to allow the founders to maintain control of the capital of companies, and to sell short, a practice that is prohibited in the other lists of the country.
Given the technological features of the companies listed on this new list, no limits were set for the price/earnings ratio (p/e). For other cases, instead, from 2014 the China Securities Regulatory Commission has indicated, on an unofficial basis, a limit of 23 times the profits for the main stock exchanges.
To limit the influence of retail investors, access to the Star Market is reserved for investors with a trading account balance of more than 500 thousand yuan (65 thousand euros) and with at least two years of experience.
According to President Xi Jinping, who announced it in November last year, this market "will help Shanghai consolidate its position as an international financial center and hub for science and innovation."
Beijing's willingness to compete with the NASDAQ is clear, but the main unknown factor for businesses remains the commercial perspective due to tensions with the United States. "In the future it will become increasingly important for investors to distinguish between companies that have simply enjoyed cyclical advantages in an expanding economy and those that offer real structural opportunities in a market that is considerably changing," explained Charlie Sunnucks, manager of the Global emerging markets team of Jupiter asset management.
(Source: Class Editori)
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