Maybe SGX should open a ChiBai... 
HONG KONG (MarketWatch) -- All 28 stocks listed on China's Nasdaq-style board got off to a flying start Friday, leading to a temporary suspension in trading after they broke through limits set by the stock exchange.
The 28 stocks formed the first batch of companies listed on the Growth Enterprise Market -- or GEM -- now officially named ChiNext in the southern Chinese city of Shenzhen. Trading on the ChiNext board, created to enable high-growth companies in the early stages of development to meet their financing needs, will take place alongside the main Shenzhen board. But the listing criteria for ChiNext are less stringent than those on the main stock exchange boards.
All 28 stocks at least doubled in value in intraday trading, sparking concerns about excessive valuations and prompting some analysts' musings that further gains in performance could pull investors away from the country's two main exchanges.
"It shows the immaturity of the Chinese market. Everybody is out for a quick profit, without considering the actual worth of the company. The risk is that all the money will go into the GEM [ChiNext] board," said Francis Lun, general manager at Fulbright Securities.
HONG KONG (MarketWatch) -- All 28 stocks listed on China's Nasdaq-style board got off to a flying start Friday, leading to a temporary suspension in trading after they broke through limits set by the stock exchange.
The 28 stocks formed the first batch of companies listed on the Growth Enterprise Market -- or GEM -- now officially named ChiNext in the southern Chinese city of Shenzhen. Trading on the ChiNext board, created to enable high-growth companies in the early stages of development to meet their financing needs, will take place alongside the main Shenzhen board. But the listing criteria for ChiNext are less stringent than those on the main stock exchange boards.
All 28 stocks at least doubled in value in intraday trading, sparking concerns about excessive valuations and prompting some analysts' musings that further gains in performance could pull investors away from the country's two main exchanges.
"It shows the immaturity of the Chinese market. Everybody is out for a quick profit, without considering the actual worth of the company. The risk is that all the money will go into the GEM [ChiNext] board," said Francis Lun, general manager at Fulbright Securities.
