Shanghai Party Secretary Li Qiang (Center L) and China Securities Regulatory Commission (CSRC) Chairman Yi Huiman (Center R) attend the listing ceremony of the first case of companies at STAR Market, China's new Nasdaq-style tech board, at Shanghai Stock Exchange (SSE) in Shanghai, China July 22, 201
SHANGHAI (Reuters) – China's new Nasdaq style board for home-based technology companies began trading on Monday, with most of the shares in their debut.
Most of the first groups of 25 companies – ranging from chip makers to biotech companies – quickly climbed early trading at STAR Market, operated by the Shanghai Stock Exchange.
Zhangjiang Hangke Technology Inc ( 688006.SS ) was the first company to hit an upper limit switch designed to temporarily stop trading with a bid to calm frenzied buying, climbing 30% from the market open.
However, Suzhou Harmontronics Automation Technology Co. Ltd ( 688022.SS ) triggered the power switch in the opposite direction and dropped 30% from the market open.
SSE said that an index tracking of STAR Market will be launched on the 11th trading day after the debut of the 30th company on the board.
Modeled after the Nasdaq, and complete with a US-style IPO system, STAR can still be China's boldest capital market reform efforts. It is also seen driven by Beijing's ambition to become technologically self-sufficient as a longer trade war with Washington, which captures Chinese tech firms in the cross-fire.
Even veterans of China's notoriously volatile stock markets had braced for a wild opening day on the new board, after the first public offerings were overwritten by an average of around 1700 times among retail investors.
Reporting by Samuel Shen, Luoyan Liu, Andrew Galbraith and Winni Zhou; Editing by Jacqueline Wong