SHARES of eight small companies will start trading on the Shenzhen Stock Exchange today after raising a combined 4.74 billion yuan (US$783 million) in their initial public offerings (IPOs), marking the second instance of new listings in over a year.

    The debut of the seven manufacturers and one IT company followed Friday’s listing by valve manufacturer Neway Valve (Suzhou) Co., the first listing in 14 months. Neway surged 43 percent on its first day of trade followed by a 9.98 percent correction yesterday.

    China imposed a moratorium on IPO markets beginning in late 2012 as part of efforts to boost investor confidence amid a downturn in local stock markets for a number of years. Part of the problem was a mispricing of shares, with new stocks surging initially but then performing far worse than the broader market.

    Following an overhaul of the market, the government allowed the resumption of IPOs in late 2013, and in recent weeks, approved firms have been slated for new share offerings.

    The companies said yesterday in separate filings to the Shenzhen bourse that their shares would go public today after each raising between 308 million yuan and 1.10 billion yuan.

    Among the eight companies, three will list on the board for small and medium-size enterprises. They are household-appliance manufacturer Guangdong Xinbao Electrical Appliances Holdings Co., electrical apparatus manufacturer Shanghai Liangxin Electrical Co. and auto parts manufacturer Changzhou Guangyang Bearing Co.

    The other five will list on the ChiNext board, a market for start-ups. They are drug company Zhejiang Wolwo Bio-Pharmaceutical Co., pharmaceutical equipment producer Truking Technology Ltd., education service provider Guangdong Qtone Education Co., machinery manufacturer Chengdu Tianbao Heavy Industry Co. and electricity flow meter manufacturer Hangzhou Sunrise Technology Co. (SD-Agencies)