Stocks surged on the Shanghai Stock Exchange sci-tech board this morning, recovering after a 13.97% decline in the last five trading days.
The Shanghai Stock Exchange main entrance. Image credit: Hao Qiuhui/EO Company
Total market capitalization of the 28 firms listed on the Star Market hit CNY 614.04 billion (USD 85.98 billion) by the midday break, adding 1.39% to the pre-opening CNY 605.62 billion (USD 84.80 billion).
This is a minor market correction after all the sci-tech board stocks went into free fall last week, shrinking by 13.97% on average.
Semiconductor companies, considered by EqualOcean as a bellwether of China's tech scene, have been hovering around the zero-growth mark this morning. AMEC (中微公司, 688012:SH) and Amlogic (晶晨半导体, 688099:SH) ended up the session drawing a peculiar sort of harami cross. Anji Technology (688019:SH), the smallest chipmaker therein, grew 0.96%, reaching CNY 7.60 billion (USD 1.06 billion) in market cap.
According to EqualOcean analysis, the market is projected to bounce back this week, retaking up to 12% of market equity value.
Meanwhile, a new stock at the venue is coming: Beijing-based software firm ABT Networks (安博通, 688168:SH) has been successfully registered and is expected to start trading shortly.