STAR Market lists 72 firms in first year
A total of 72 firms are expected to have been listed on the SSE STAR market by the end of 2019, the first year of the innovation-oriented board, with 84 billion yuan (US$12 billion) being raised through IPOs.
Currently, 70 companies have completed their trading process. Half of them surged more than 100 percent on their first trading day. The board didn't have a daily limit in its first five trading days.
The number compared with 67 firms newly listed on all other stock markets in China.
In 2019, proceeds of the top 10 IPOs amounted to 100.6 billion yuan, up 49 percent compared with the previous year, among which four came from the STAR Market, with proceeds of 20.8 billion, representing 21 percent of total funds raised by the top 10 IPOs, EY said in a report.
With booming share prices, three firms on STAR are valued over 50 billion yuan by market value and another one is very close to the line.
By Thursday, Montage Technology Co was valued at more than 84.6 billion yuan, followed by Beijing Kingsoft Office Software Inc at 76.2 billion yuan and China Railway Signal Communication Corp at 73.8 billion yuan. Advanced Micro-fabrication Equipment Inc, or AMEC, was valued 48.9 billion yuan by Thursday.
Based on China’s stock market situation and history of Chi-Next board development, STAR firms’ prices will become “positively active” in the spring of 2020, said Shenwan Hongyuan Securities.