The 25 shares listed on Star received 160% on average within dinner in China. Shares in Anji Microelectronics Technology, which make materials for semiconductors, rockets as much as 520% before trimming they get a little.
The money wall pouring into the market created several new billionaires on paper, including the founders of Suzhou HYC Technology and Zhejiang Hangke Technology.
Analysts said the spectacular gains were driven by China's desire for a strong market bout and unrealistic investor expectations driven by bullish state propaganda.
"This [surge] is crazy," says Ronald Wan, CEO of Partners Capital International in Hong Kong. "But it's already exaggerated. I don't think such gains can last long. It's too speculative."
Previous attempts by China to create a competitor for Nasdaq in 2009 and 201[ads1]3 failed due to lack of quality records and limited stock trading. Shanghai's Star Market may be different.
This is the first time a Chinese president has announced the creation of a stock exchange, and emphasizes the extent to which Beijing hopes that the board will help China become the dominant player in future technologies.
The country's top securities regulator says that the new Shanghai market will enjoy innovative companies in six emerging "strategic-importance" industries.
These industries include the next generation of information technology, smart manufacturing, space travel, new materials, renewable energy and biotechnology.
The industries are all geared towards Beijing's Made in China 2025 initiative and the latest five-year plan, which aims to transform the country into a superpower that dominates high-tech industries.
Regulators have introduced some significant changes for Star. In a first for China, the market allows companies that lose money to list. Piloting a US-style IPO system, has also streamlined the application process and given issuers and investors greater control over the pricing and timing of the first public offerings.
Of the first group of 25 companies that started trading Monday, 24 were listing for the first time. In total, the 25 companies increased over 37 billion yuan ($ 5.4 billion yuan).
"To break the foreign monopoly and develop [our] integrated circuits test industry, we still need investment in research and development. Give us the biggest promise," Suzhou HYC Technology mayor Chen Wenyuan told the state Shanghai Securities Journal.
Stars original selection also includes chip makers, AI companies, biotech companies, electric car batteries, and high-speed railway vendors. It is a pipeline of more than 100 companies waiting to list, according to the stock exchange in Shanghai.
The new technological board has fallen in line with the New York Stock Exchange, Nasdaq and Hong Kong by allowing listings of two-class stocks or weighted voting rights.
It is a change aimed at attracting Chinese technology companies that are currently trading overseas. Both structures are popular among entrepreneurs because they allow them to keep control after going public.
"I think leading Chinese technology companies are coming back because of better valuation and favorable policies," said Hao Hong, CEO and Research Director at BOCOM International.