The first day of trading on the Shanghai stock exchange's new tech board, Star Market, posted stellar numbers as share prices soared, paving the way for China's efforts to give an answer to the NASDAQ to pay off.
Multiple outlets confirmed that share prices saw significant hikes under China's new tech board. According to CNN, 25 stocks listed on the board gained 140 percent on average before markets closed on Monday.
The biggest gainer on Monday's trading was semiconductor firm Anji Microelectronics Technology. The company's shares hit 520 percent before the gains were slashed to 400 percent. Still, these stock prices are considered spectacular by investors who closely watched Star Market throughout the day.
Investment experts noted that China's Nasdaq-style tech board was established as part of Chinese President Xi Jinping's bid to help encourage local tech firms to be more independent from foreign providers.
Xi's campaign to push for independence from foreign technology was further fueled after the U.S. government under President Donald Trump blacklisted China's tech crown jewel and the pride of its technology circle, Huawei.
While China has attempted in the past to give a direct answer to Nasdaq, the 2009 and 2013 plans failed. However, many investment analysts believe Shanghai's Star Market is a whole, new board that has bigger chances of rivaling Nasdaq on an equal level.
Analysts said Star Market may be different from previous attempts because it features more quality listings. Unlike the previous tech boards introduced, Shanghai's tech board features the following emerging tech segments: biotech, aerospace, next-gen information technology, renewable energy, and smart manufacturing.
The first batch of 25 companies that kicked off trading on Monday featured 24 first-timers. Despite only one firm with experience in trading, all 25 firms raised a whopping estimate of over 37 billion yuan or $5.4 billion.
Meanwhile, expectations are high for China's new tech board. While the first day of trading showcased great performances by the 25 listed companies, investors are looking forward to how the board will perform in the coming weeks.
Many interested investors see Star Market as an opportunity to redeem the losses they incurred in the global stock market. For these investors, Shanghai's tech board could be the answer to their woes.
Overall, many investors believe the new tech board will further propel China to the big stage where Nasdaq and other indexes shine. "The launch of the new board is a fresh sign China has shifted its focus from quantity and pace to quality in driving economic growth," general manager of mutual fund AXA SPDB Investment Managers, Yu Peihua, pointed out.
