As an important part of China's capital market, the STAR Market has been widely concerned by investors since its official opening on July 22, 2019. The STAR Market aims to support the development of science and technology innovation enterprises, providing a more flexible and inclusive market environment. So, what is the performance of the first day of listing of new shares on the STAR Market?
First of all, understanding the rise and fall limits of the STAR Market** is the basis for analyzing the performance of new listings. Unlike the Main Board and ChiNext Board, there is no limit on the rise and fall of the STAR Market** during the first 5 trading days after listing, which means that the stock price can fluctuate freely during this period. However, in order to prevent excessive volatility, the STAR Market has set up a temporary suspension mechanism. Starting from the 6th trading day, the rise and fall limit of the STAR Market** is 20%, which is more lenient than the 10% limit on the Main Board and ChiNext.
The first day of listing of new shares on the STAR Market is usually warmly sought after by the market, and the stock price often appears to be relatively large**. Since there is no limit on the price increase, the increase of new shares can sometimes exceed 100%. According to statistics, up to now, the average increase in the first day of listing of new stocks on the STAR Market is about 140%, which is much higher than the first-day performance of new stocks on the main board and ChiNext.
The magnitude of the increase in the first day of listing of new shares on the STAR Market is affected by a variety of factors, including market sentiment, company fundamentals, industry prospects, etc. Among them, market sentiment is the most direct influencing factor, and investors' enthusiasm for technology innovation companies often drives the first day of new stock gains. In addition, the company's financial position, technological innovation capabilities, and the development potential of the industry in which it operates are also the focus of investors.
The sharp increase in the first day of listing of new shares on the STAR Market is not only a reflection of market sentiment, but also has important economic significance. First of all, it reflects the high recognition and expectation of investors for technological innovation enterprises. In the current context of economic transformation and industrial upgrading, scientific and technological innovation is regarded as a key driving force for economic development. Therefore, the enthusiastic pursuit of new listings on the STAR Market reflects the capital market's support for the innovation-driven development strategy.
Secondly, the increase in the first day of listing of new shares on the STAR Market is also a preliminary assessment of the value of the enterprise. While market volatility may amplify short-term fluctuations in stock prices, in the long run, the performance of stock prices is closely related to the growth and profitability of a business. Therefore, the performance of new listings on the STAR Market also provides a window for the market to observe and evaluate the value of technology innovation enterprises.
The establishment of the Science and Technology Innovation Board has had a profound impact on innovative enterprises. First of all, the STAR Market provides more convenient financing channels for these enterprises. By raising funds through listing, technology innovation enterprises can accelerate the R&D process and speed up the time to market, thereby enhancing their competitiveness. Secondly, the existence of the STAR Market has increased the visibility and brand value of innovative enterprises, which helps to attract more talents and partners.
For investors, the STAR Market is an investment area that is full of opportunities and risks. On the one hand, the high growth rate of new stocks on the STAR Market provides investors with lucrative earning potential. On the other hand, due to the greater uncertainty faced by technology innovation companies, their stock prices are also relatively volatile, which requires investors to have a high risk tolerance and professional judgment.
The large increase in the first day of listing of new shares on the STAR Market is not only a market phenomenon, but also reflects investors' enthusiasm for technological innovation and the role of the STAR Market in promoting economic transformation and supporting innovative development. For investors, participating in the IPO investment of the STAR Market needs to comprehensively consider the company's fundamentals, industry prospects and their own risk tolerance. With the continuous development and improvement of the Science and Technology Innovation Board, it is expected to play an increasingly important role in China's capital market.