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在线翻译:
szdaily -> Markets -> 
Warning bell rings on startup mania
    2020-09-14  08:53    Shenzhen Daily

DOMESTIC media are stepping up warnings about a manic run-up in newly listed shares, seizing on a loss-making cattle breeder whose shares have surged 500 percent in less than two weeks.

The eye-watering jump in shares of Xinjiang Tianshan Animal Husbandry Bio-Engineering Co. attracted the attention of the Xinhua news agency, which used the company to warn about the risks of chasing speculative gains in an editorial last week, sparking a broader selloff.

That marked a sharp correction for Shenzhen’s Nasdaq-style ChiNext board, just weeks after the introduction of listing reforms on the tech-focused startup board triggered a meteoric run-up in prices.

At Friday’s close, ChiNext was down more than 7 percent for the week, its biggest weekly loss since March.

“Wave after wave of investors have placed themselves in a dangerous game of hot potato,” the Xinhua commentary warned.

The increased regulatory scrutiny comes as the Shanghai bourse prepares to review Alibaba-backed Ant Group’s application for a local initial public offering (IPO), part of an up to US$30 billion dual listing the company is seeking in Hong Kong and the STAR Market of the Shanghai Stock Exchange.

Trading in shares of Tianshan has been halted since Wednesday. Trading of shares in Shenzhen Changfang Group and Zhengzhou Sino-Crystal Diamond has also been halted from Wednesday on the ChiNext board after the stocks skyrocketed in several days.

“It’s really sending retail investors to the slaughter,” an investor on the trading community app Xueqiu wrote about Tianshan on Friday, under a post speculating about the resumption of trading.

The STAR 50 index of companies on Shanghai’s Nasdaq-style STAR Market was down more than 5.5 percent for the week, its fifth straight week of losses.

A record 63 companies conducted A-share IPOs in August, domestic media CCTV Finance reported, as firms rushed to take advantage of investors’ enthusiasm for new listings.

“There are many companies with poor fundamentals in the market, while the pace of new listings has been rapid, putting a flurry of new companies onto the market without sufficient investor protection,” said Pei Guilin, CEO of Yixing Heze Asset Management in the coastal province of Jiangsu. (SD-Agencies)

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