China's tech exchange begins trading...and stocks soar up to 500%
- Asian Market
- 3 months ago
The STAR exchange was inaugurated by President Xi Jinping about a year ago, however it is safe to say no one had foreseen the stellar performance it had on its first day of trading earlier today.
The exchange is mainly focused on science and technology- focused equities and its first 25 companies to be listed saw their shares rise between 84% to 400% higher than originally priced with an average gain of 140%.
And it could very well mean that more Chinese companies will consider listing on their very own tech-based index rather than venturing to its better-known competitor, the Nasdaq.
So far 140 tech firms have signed up to the Star exchange and Beijing plans to encourage more to join as recent troubles with tech firm Huawei and an ongoing trade spat between Washington and Beijing have left some companies being blacklisted by the Trump administration.
Among the companies to list on the first day of trading were chipmakers Anji and Montage Technology, which rose as much as 520% and 285% respectively.
Four of the 25 stocks were up more than 200% at the close, with 16 stocks up more than 100%.
Source: Smart Trend Team