56% of STAR firms double their share price

More than 56 percent of STAR-listed firms have doubled their share price since the debut of Shanghai SSE STAR Market a year ago.

Meanwhile, the booming development of the new technology board has helped the Shanghai market remain its leadership position in initial public offering funds raised globally, Deloitte said in a report.

By Monday, its first anniversary, 110 firms had listed on the STAR Market with 1.7 trillion yuan (US$243 billion) in market value. Among them, 62 firms had doubled their share price while 15 firms tripled theirs and some firms’ shares had surged by five to seven times, according to data provider Wind. 

A total of 46 firms had a market value over 10 billion yuan, including two firms valued at over 100 billion yuan, according to Wind.

By June 17, 345 firms had applied to list on the STAR Market, including Semiconductor Manufacture International Corp (SMIC), the biggest chipmaker on the Chinese mainland.

SMIC, already listed in Hong Kong, plans to raise 20 billion yuan in the STAR Market, which would make it the top money-raising firm on the board.

More overseas listed firms will be seeking domestic or secondary listing in the STAR Market, with relatively high valuations, policy support and sufficient capital, analysts said.

Helped by the large number of tech listings on the STAR Market, Shanghai Stock Exchange sustained its global leadership in IPO funds raised in the first half, surpassing New York Stock Exchange and Nasdaq once again, Deloitte said.

Even amid the COVID-19 pandemic, the Chinese mainland and Hong Kong IPO markets, including the STAR Market, are set to remain strong this year, with new economy listing and regulatory reforms.

“Supported by the resilience of tech businesses, abundant market liquidity and various regulatory reforms, these trends are set to continue in 2H 2020,” Deloitte said.