Record price for STAR shares

Laser-cutting firm's stock surges 255.6 percent to hit 243.9 yuan on its debut in the new market geared to technology companies and startups.

Two more firms started trading on the Shanghai STAR Market on Thursday, creating a record stock price.

Shanghai Friendess Electronic Technology, a laser-cutting firm, surged 255.6 percent to hit 243.9 yuan (US$34.8), creating a record price among all existing 27 STAR firms.

Chip designer Amlogic (Shanghai) Co surged 272.4 percent to close at 143.4 yuan.

The shares were temporally halted from trading for 10 minutes to “cool down” after surging 30 percent.

That was in contrast to the mainstream Shanghai trading board, where price gains are capped at 44 percent on debut days and trading swings are limited to 10 percent a day for the duration of trading.

The STAR Market is China’s newest board geared to technology companies and startups, ranging from chipmakers to biotech firms. It is aimed at giving companies involved in cutting-edge science and technology greater access to funding.

During intra-day trading, shares jumped up to 300 percent compared with their IPO (initial public offering) price. It brings up to 100,000 yuan profit to each individual investor who got rights to buy shares through online subscription.

The no-limit price will last for the first five trading days, according to the rules of the new STAR Market.

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