Demand Swamps New Chinese Exchange
ChiNext, China’s new stock exchange, opened Friday with a bang. From the Financial Times:
Investors piled into the fledging market in the hope that its technology and innovation-driven start-ups would become future heavyweights. But some experts were sceptical.
“There’s a lot of belief that somehow the next Microsoft is lurking in there, which you’d be a fool to believe,” said Fraser Howie, author of Privatizing China: Inside China’s Stock Markets.
One of the most popular stocks was Huayi Brothers Media, the movie maker famed for putting kung fu stars Jet Li and Jackie Chan in the same film. It soared 148 per cent above its flotation price.
The rest of the companies, ranging from software to robot designers, made similar gains, led by Chengdu Geeya Technology, a maker of digital television equipment, which more than tripled in value.
See also “ChiNext: China’s New Gambling Hall” from Seeking Alpha.