The Star Market Overview 3Q 2020
Trends, stocks and insights
Background
Launched in July 2019, the Science and Technology Innovation Board, or the Star Market, an ambitious project in China's economic reform, which aims to lay a foundation for a healthy financial ecosystem to further encourage technology innovations, has already celebrated its first anniversary. Learning from Nasdaq, the new board piloted the registration-based IPO system – the bourse had received more than 450 applications by the end of the third quarter of 2020, with 184 companies listed by that time.
The pandemic-triggered economic downturn projects long-term impacts on countries. China has been recovering from the crisis since the second quarter, but the overall market performance gave a clear image of what the market had been through amid the war against coronavirus. By contrast, new public offerings in the third quarter accounted for 1/3 of the total listings on the board.
This is EqualOcean's fourth quarterly overview of the Star Market. The following links are to the previous coverage:
China's 'Star Market': A New Engine for the Budding Tech Sector
The Star Market Overview 4Q 2019
The Star Market Overview 1Q 2020
The Star Market Overview 2Q 2020
In this report
The research is designed to provide a comprehensive overview of the Star Market in the third quarter.
The first part of the paper includes market performance and comparisons with the previous period, including new listings, quarterly performance and sector-level changes.
The second part comprises the regulatory environment shifts and milestone events.
Key Takeaways
► The free-float market cap of all the Star Market-listed firms as of September 30 reached CNY 579 billion, up from CNY 377 billion on June 30.
► New IPO proceeds first time surpassed that of other A-share boards, accounting for 57% of the total A-share IPO proceeds.
► The market saw negative growth in the third quarter; the semiconductor sector with the biggest presence on the board received massive attention because of the Sino-American technology standoff.
► The Star Market launched its first composite index – the Star 50; the index will be updated periodically to adapt to the growth of the bourse and reflect the market performance.
► The financial market furthered openness: the first dual listing has been launched and the first wholly foreign-controlled mutual fund license was issued.
