SHANGHAI (Reuters) – Companies on China’s new Nasdaq-style bourse retreated on Tuesday, shedding some of the massive gains made on their volatile debut in the previous session, although all remained well above their listing prices.
While 24 out of 25 companies on the Shanghai Stock Exchange’s STAR Market opened lower, by the midday break four companies managed to post gains, led by Espressif Systems (Shanghai) Co., a maker of wireless communication chips, which jumped 15.1%.
China Railway Signal & Communication Corp posted the sharpest decline of the morning session, falling 16.1% by the midday break, having earlier fallen nearly 22%. The company’s shares remain 76% higher than their initial public offer price.
Yuan Yuwei, fund manager at Olympus Hedge Fund Investments Co, said that STAR Market valuations could remain frothy in the short term, but that he expected to see declines over the next two to four weeks. On Monday, stocks posted average gains of 140%.
“This is a…
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