Three tech executives have just been promoted to billionaire status under China's new Nasdaq-style tech board, the Shanghai Star Market. Industry analysts said they aren't surprised by the stellar success of the new tech market.
According to CNN, Chairman and Founder of Suzhou HYC Technology, Chen Wenyuan, now holds shares of $2.2 billion after Wednesday's trading, Chairman and General Manager of Zhejiang Hangke Technology, Cao Ji, has $2 billion in shares, and Founder and Chairman of ArcSoft, Hui Deng, is now worth around $1.1 billion.
25 stocks listed on the new tech market. The Star Market exceeded all expectations when the 25 listings gained 140 percent on average when the board debuted on Monday. Both Cao and Chen's wealth passed the billion-fortune mark after the stellar debut of what is considered as China's answer to the Nasdaq board.
As for Deng, his company's shares surged over 100 percent from the initial IPO price. On Wednesday, ArcSoft's stocks saw gains of two percent, still a significant figure that could further go up in the coming weeks.
Industry analysts have heaped praises on Shanghai's new tech board, noting that 24 of the companies that listed were first-timers. The Chinese government has also been expressing confidence in the tech board's potentials.
Among the most-awaited listings that are expected to join the Star Market sometime in the near future are Tencent and Alibaba. The latter, most significantly, wanted to list within home turf years back but plans were helped back by stricter regulations on voting power.
Speculations have been rife regarding Alibaba's "way back home" as it reportedly filed for a Hong Kong Stock Exchange mega-listing that could see big returns for China's booming tech industry.
With the Star Market's more lax regulations and the spectacular numbers that came around during the board's trading debut, both domestic and international analysts are expecting Alibaba and other Chinese "big tech" firms to take notice.
It is further expected that aside from Alibaba and Tencent, the following Chinese tech giants will decide to list back home: JD.com and Baidu (both are listed in the U.S. Nasdaq). Didi Chuxing, on the other hand, is reportedly moving to list with the Hong Kong index sometime this year but no confirmations have been given by the company.
Finally, industry experts are watching ByteDance, the private parent company of TikTok. The firm is reportedly planning to go public this year but official announcements have yet to be made.
Finance experts are eager to see how China's new tech board will perform within the following months, especially if the country's biggest companies join what could be the Nasdaq's biggest rival yet.
