Saudi Press

Saudi Arabia and the world
Sunday, Jun 01, 2025

China's answer to the Nasdaq just had a crazy first day. Stocks gained 140%

China's answer to the Nasdaq just had a crazy first day. Stocks gained 140%

Trading on China's new Nasdaq-style stock market got off to a spectacular start Monday as investors sent share prices soaring, creating several new tech billionaires in the process.

The new board of the Shanghai stock exchange, known as the Star Market, is part of China's bid for tech superpower status. The initiative was unveiled less than a year ago by President Xi Jinping.

Beijing hopes Star will help China's high-tech companies tap into vast wealth held by local investors, and entice global leaders such as Alibaba (BABA) and Tencent (TCEHY) to return from stock markets in New York and Hong Kong.

The 25 stocks listed on Star had gained 140% on average by the time the market closed. Shares in Anji Microelectronics Technology, which makes materials for semiconductors, rocketed as much as 520% before trimming those gains to 400%.

The wall of money pouring into the market created several new billionaires, including the founders of Suzhou HYC Technology and Zhejiang Hangke Technology.

Analysts said the gains were being driven by China's desire for a strong market debut and unrealistic expectations among investors, fueled by state propaganda. They warned of a hangover to come.

"This [surge] is crazy," said Ronald Wan, chief executive of Partners Capital International in Hong Kong. "But it's already overdone. I don't think such gains can last long. It's way too speculative."

Star-listed companies were worth 120 times earnings on average by the end of the first day, according to Chinese market data provider Wind. Stocks on the Nasdaq and Shenzhen's tech market typically are worth 24 times earnings, according to Refinitiv data.

China has been encouraging its companies to become less dependent on foreign money and technology, a campaign that has intensified during the trade war with the United States and since the Trump administration blacklisted Huawei, a leading global smartphone maker and 5G network supplier.

Previous attempts by China to create a rival to Nasdaq in 2009 and 2013 failed because of a lack of quality listings and limited turnover in shares. Shanghai's Star Market might be different.

It's the first time a Chinese president has announced the establishment of a stock exchange, highlighting the extent to which Beijing hopes that the board will help China become the dominant player in the technologies of the future.

The country's top securities regulator says the new Shanghai market will welcome innovative companies in six emerging industries of "strategic significance." They include next-generation information technology, smart manufacturing, aerospace, new materials, renewable energy and biotech.  

The sectors all align with Beijing's Made in China 2025 initiative and the latest five-year plan, which aim to transform the country into a manufacturing superpower that dominates high-tech industries.  

Regulators have introduced some significant changes for Star. In a first for China, the market allows companies that are losing money to list. Piloting a US-style registration IPO system, it has also streamlined the application process and given issuers and investors greater control over the pricing and timing of initial public offerings.  

Of the first batch of 25 companies that began trading Monday, 24 were listing for the first time. In total, the 25 companies raised more than 37 billion yuan ($5.4 billion).

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×