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China’s Nasdaq-style Star Market mints one billionaire a month with rally that outstrips FAANG stocks
- The Star Market in Shanghai has produced at least 13 billionaires in its first year, including a chip supplier to Huawei
- Stocks on the technology board have risen 201 per cent on average versus about 78 per cent in the NYSE FANG+ Index
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China’s Nasdaq-style Star Market board in Shanghai has produced at least 13 billionaires since its launch a year ago, driven by a market exuberance over tech companies with returns that outstripped the much-vaunted FAANG members.
The 13 founders of companies that went public on the Star Market – also known as the Shanghai Stock Exchange Science and Technology Innovation Board – boast an individual net worth of more than a billion dollars, based on the market value of the stakes they own.
The burgeoning wealth capped the board’s first anniversary, establishing a fundraising venue for companies in industries from semiconductor manufacturing to biotechnology, after a series of groundbreaking reforms such as doing away with an implicit valuation cap of 23 times price-to-earnings ratio for new listings.
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The 133 companies listed on the board have surged 201 per cent on average from their initial public offering levels based on Tuesday’s closing prices, according to data from Sina Finance. The NYSE FANG+ Index which tracks 10 stocks including Facebook, Apple, Amazon, Netflix and Google, has advanced about 80 per cent since a year ago.
This year, top performer National Silicon Industry Group has returned a stunning 1,054 per cent, while Aphabet Inc (Google) and Facebook logged in about 16 per cent and Amazon advanced 68 per cent.
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