Individual investors monitor share prices at a stock exchange in Nanjing, East China's Jiangsu Province on Tuesday. Photo: IC

China's new high-tech board, the Science and Technology Innovation Board (STAR market), went down on Tuesday, the second trading day, with most listings declining after an across-the-board surge on Monday. 

At the close, 21 of the 25 debut stocks were lower. Shares of China Railway Signal and Communication (Group) Corp (CRSC) dived 18.42 percent to 10.01 yuan ($1.46) per share. Most stocks fell more than 10 percent. 

CRSC shares surged on Monday, making it the only STAR company to have a market capitalization of more than 100 billion yuan. As of the close on Tuesday, the company's market cap was about 106 billion yuan, compared with 129.9 billion yuan at the close on Monday.

Four shares rose on the STAR board on Tuesday. Shares of Espressif Systems surged 14.24 percent, the strongest rise of all STAR shares. 

Turnover ratios also fell during the day, with only three stocks having a turnover ratio of more than 50 percent on Tuesday. The average ratio on Monday was about 77 percent. 

"Considering that the STAR board is intended to be driven by market forces, such fluctuations are normal. I believe the regulators will have higher tolerance of volatility on the STAR market than on other exchanges in the Chinese mainland," Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Tuesday.

Considering the STAR market's boisterous debut, IPO prices of future listings on the board might hover higher, he said.

But experts said that volatility on the board is set to decline.

"Beginning from the second trading day, the new board is likely to correct, and stocks will show more visible differentiation," said Dong Dengxin, director of the Financial Securities Institute at the Wuhan University of Science and Technology to the Global Times. 

He forecast that for the rest of this week, turnover ratios, trading volumes and price fluctuations will all correct, as the technology companies move toward prices that reflect their genuine near-term values.

Yu Fenghui, a veteran financial commentator, told the Global Times that the high market capitalizations will gradually return to normal levels.

The STAR market got off to a frenzied start on Monday. All of the new listings shot higher, with 16 of them doubling their share prices.