The China's newly established high-tech board, the Science and Technology Innovation Board (STAR market) cooled down during the morning session of the second trading day, as most STAR stocks gradually corrected after a surge in market values on Monday.
As of 11:30 am, the end of the morning session, 21 of the existing 25 STAR stocks edged down, with shares of Anji Technology Co slipping furthest to 20.21 percent. Most stocks edged down to a mild extent of less than 10 percent.
Anji Technology, dubbed by some investors as the "STAR stock king", led the rally on Monday with its shares rising more than four-fold at 196 yuan ($28.5) per share.
On Tuesday morning, four shares rose on the STAR board. Shares of Espressif Systems surged by 15.06 percent, the strongest rise of all STAR shares.
Experts shared the opinion to the Global Times that fluctuation will settle down on the STAR market after heated first-day trading.
"Beginning from the second trading day, the whole board is very likely to correct, and stocks will show more visible trends of differentiation," said Dong Dengxin, director of the Financial Securities Institute at the Wuhan University of Science and Technology.
He predicted that in the remaining trading days this week, the turnover rate, trading volume and fluctuation range of STAR stocks will all correct, as the tech companies in question gradually move toward a price range which reflects their genuine near-term values.
Yu Fenghui, a veteran financial commentator, also told the Global Times that the buoyed market values will gradually turn to a normal state.
The STAR market got off to a frenzied start on Monday. As of closing time, all 25 companies surged, with 16 of them doubling share prices. The new board also saw a turnover of 48.5 billion yuan on Monday, more than doubling the first-day 21.1 billion yuan turnover on the similar ChiNext board.
The heated trading also gave rise to the first STAR stock whose market values broke 100 billion yuan, the China Railway Signal and Communication (group) Corp. The company's market value dropped to 109 billion yuan as of press time, compared with its 129.9 billion yuan by closing time on Monday.
Global Times
