Healthcare, Financials, Automotive Author: Ivan Platonov Jul 23, 2019 12:21 PM (GMT+8)

Only four of 25 companies listed on the new China's Nasdaq-style board, known as STAR, closed the morning trading session in the red.

Brown bear sitting on grass field. Image credit: Mark Basarab/Unsplash

Chinese financial markets' inherent volatility showed up on the new sci-tech venue as the 25 companies' stocks retreated 7.68% on average by the midday break. 

This caused average market P/E ratio to slip from yesterday's 102.66 (trailing 12 month) and 99.14 (last-year ratio) to 95.19 and 92.65 respectively. 

WiFi chipset producer Espressif Systems (688018:SH), which yesterday finished 106.25% above the initial IPO price, has seen another 15.06% leap in today's morning session, the company's market cap thereby hit CNY 11.88 billion (USD 1.73 billion).

China Railway Signal & Communication (688009:SH) is down 16.06%, its market cap shrunk to CNY 109 billion (USD 15.84 billion) today. CRSC's Hong Kong stock (3969:HK) surged 2.03% this morning.

Traffic Control (688015:SH), another firm representing transportation industry, lost 10.55% of the stock value.

We expect the small-sized hardware producers such as Anji Technology (688019:SH) to make bigger waves in the afternoon.

The STAR Market's "red zone" is anticipated to grow within the following two-hour session.