CHINA’S securities regulator has approved the initial public offering (IPO) applications of two companies on the newly launched science and technology innovation board.

Suzhou HYC Technology Co. and Yantai Raytron Technology Co. have become the first two companies approved to be listed on the sci-tech innovation board, the China Securities Regulatory Commission (CSRC) said in a statement Friday night.

It did not specify the total amount of funds to be raised.

China officially launched its science and technology innovation board, also known as the STAR Market, Thursday in Shanghai, kicking off the country’s much-anticipated capital market reform this year.

As of June 10, the Shanghai Stock Exchange had handled 119 applications for IPOs on the sci-tech innovation board. Among them, 41 companies, or 34 percent, are in the field of new generation information technology, 21 in the advanced equipment industry, 27 in biomedicine and 13 in new materials.

Meanwhile, the Shanghai exchange said Friday that it would closely monitor any abnormal trading patterns on the tech board, in a bid to curb financial risks and protect investors interests.

China’s top securities regulator Yi Huiman flagged the risk of short-term speculation and high volatilities when stocks start trading on the board.

There will be no daily limits for the first five days of trading in new stocks, compared with the existing 44 percent limit on other boards. In contrast to a 10 percent daily trading limit on other mainland boards, stocks listed on the STAR Market are allowed to rise or fall by up to 20 percent a day.

The Shanghai exchange published rules Thursday which it said were aimed at “preventing big market fluctuations, while maintaining market liquidity.”

If stocks rise or fall more than 30 percent, or 60 percent, for the first time within a session, trading would be suspended for 10 minutes. (SD-Agencies)