China's Star Market Starts Its Journey

Healthcare, Technology, Financials Author: Ivan Platonov, Feng Linyan, Wang Butao, Yusuf Tuna, Cao Wenbo, Fu Yingwei. Jul 22, 2019 08:40 AM (GMT+8)

The fresh sci-tech board is a critical milestone in the path of comprehensive economic reform.

Image credit: Gaston Laborde/Pixabay

A new epoch in China’s financial history is starting off as the Shanghai Stock Exchange (SSE) opening bell is ringing today.

The STAR Market, the SSE-based sci-tech board, is ready for the first day of open trading. In a few minutes, market users will be enabled to buy and sell shares issued by 25 Chinese firms from a handful of knowledge-intensive industries, including semiconductors, software, new materials and biotech.

Download EqualOcean's latest report about the new venue.

All the applicants’ stocks were reportedly oversubscribed by the primary investors. As a result, the average P/E ratio of the first batch shot up to 53.4. Not to mention some extreme cases such as semiconductor equipment producer AMEC, which was valued at over 170 times earnings this time.

The total market valuation of the tech enterprises debuting on the SSE today amounts to CNY 236 billion (USD 34.29 billion) while the combined volume of capital raised during the public offerings hit CNY 37 billion (USD 5.38 billion). CRSC, a leading firm in China's transportation industry, alone obtained over CNY 10.5 billion (USD 1.53 billion) in new funding.

The Chinese government launched the STAR Market in an attempt to ignite innovative development by providing alternative financing sources for domestic technology-driven businesses. The new trading platform has a set of advantages over other domestic boards.

EqualOcean STAR Market coverage

We have been following each of the 25 firms since the first IPO application on the new board. Here are the articles about each of them:

AMEC (中微公司) (688012:SH)

Anji (安集科技) (688018:SH)

Appotronics (光峰科技) (688007:SH)

ArcSoft (虹软科技) (688088:SH)

BLT (铂力特) (688333:SH)

CRSC (中国通号) (688009:SH)

Endovastec (心脉医疗) (688016:SH)

Espressif Systems (乐鑫科技) (688018:SH)

Fangbang (方邦股份) (688020:SH)

Fine Yuan Technology (嘉元科技) (688388:SH)

Forecam (福光股份) (688010:SH)

Hangke Technology (杭可科技) (688006:SH)

Harmontronics (瀚川智能) (688022:SH)

HYC Technology (华兴源创) (688001:SH)

Micro-Tech (南微医学) (688029:SH)

Montage Technology (澜起科技) (688008:SH)

PIESAT (航天宏图) (688066:SH)

Raytron (睿创微纳) (688002:SH)

Ronbay New Energy (容百新能源) (688005:SH)

Tianyishangjia (天宜上佳) (688033:SH)

Traffic Control Technology (交控科技) (688015:SH)

TZTEK (天准科技) (688003:SH)

Western Superconducting (西部超导) (688122:SH)

Worldia (沃尔德) (688028:SH)

Xinguang (新光光电) (688011:SH)