BEIJING, Aug. 26 (Xinhua) --ChiNext, China's Nasdaq-style market of growth enterprises, saw its Wednesday turnover rising by more than 100 billion yuan over last Friday.
The ChiNext market cheered on overall 265.6 billion yuan turnover by closing on Wednesday, driven by massive influx of incremental capital after Monday-debuted registration-based IPOs on the board kept fueled up new stocks.
On the contrary, performances of other hot sectors on China's A-share market such as aviation, agriculture, vaccine and tax exemption-related sectors remained unexciting.
Liu Chenming, chief strategist with TF Securities held that the reforms of registration-based IPO gives the pricing rights over companies to investors and requires them to be able to recognize the economic fundamentals and shoulder certain risks.
It is found that stocks of sector leading companies have bigger price elasticity in the past 2-3 years as some of them kept growing via merger and acquisitions.
Alongside the future all-around implementation of registration-based IPO in China, the phenomenon may be more obvious and various u ncertainties in companies with small market capitalization including delisting and less than expected financial performances will still exist.
Based on these, Liu predicted that market liquidity is likely to flow into sector-leading enterprises and during the process, Matthew effect may occur over sector-leading companies on China's A-share market. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
