BEIJING, June 15 (Xinhua) -- China's Nasdaq-style sci-tech innovation board, also known as the STAR market, saw turnover exceeding 3.3 trillion yuan by its 1-year anniversary on June 13, reported Securities Daily.
In the past year since July 22, 2019 when the STAR market formally opened trading, 110 sci-tech driven companies went public on the board, with their market capitalization totaling 1.72 trillion yuan. Among them, 63 ones saw their stock prices double and five cheered for more than 500 percent rises on stock prices since their initial public offerings.
Benefited from these, securities brokers might have earned 2.367 billion yuan commissions for providing services related to the STAR market given the 0.0349 percent annual average net commission rate for securities industry provided by Securities Association of China.
The report said that the commissions from the STAR market may account for 2.55 percent of all the commission income of securities brokers in the past year by June 13.
Since July 22, 2019, the growths of prices of STAR-market-listed stocks averaged at 154.53 percent.
In short term, as both the price to earning ratio (PE) and price to book-value ratio (PB) for stocks on the STAR market have risen to relatively high levels, investors are suggested to pay attention to related risks, held Wang Delun, chief strategist with Industrial Securities.
If external risk escalates in the third quarter and sends stock market into fluctuations, the overall valuation of the STAR market is likely to pull back and return back to relatively low levels, predicted Wang.
However, the STAR market may embrace another round of investment from long-term investors late in the third quarter if these favorable factors such as looser liquidity, warming corporate financial performance and favorable policies appear, Wang added. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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