The SME board and ChiNext board are drawing more interest from investors at home and abroad, according to a report by the China Securities Journal today.
These two boards under the Shenzhen Stock Exchange are platforms at which small and medium-sized enterprises (SMEs) and start-ups in China list and trade their shares.
Many institutional investors are already diverting their attention to shares traded on these two boards, which slumped heavily for the past year but are now beginning to present investment opportunities.
Of those shares listed on the SME board and ChiNext board before 2017, 81.95 percent and 90.15 percent respectively are still below their market prices as seen early last year.
In 2018, northbound investments have continuously been buying these shares via the Shenzhen-Hong Kong Stock Connect program. Of the top ten shares ranked by net purchases under this program, five belong to the SME board and ChiNext board.
Public mutual funds are also heavy buyers. Of the top 20 listed companies, ranked by the ratio of shareholding by funds in their total circulated shares, ten are listed on the SME board and ChiNext board.
Such huge interest in the SMEs and start-ups is to some extent thanks to the support by their major shareholders and the industry funds.
Out of the 2,003 cases of shareholding increases up to Thursday, 1,293, or 64.45 percent, belong to the SMEs and start-ups.
For the first week of February, 179 shares at the SME board and the ChiNext board witnessed increased holdings by industry funds, in contrast to 97 shares at the main board.
Some shareholders were wise to increase their holdings at low costs, which would not only yield returns but also expand their leverage in the company, as commented by an investment expert in Shenzhen.
There would be a divergence among the SME shares and ChiNext shares, under which the "Nifty Fifty" would win favor with investors, while those founded only on concepts and speculations would be shunned by them, according to another expert.
These two boards under the Shenzhen Stock Exchange are platforms at which small and medium-sized enterprises (SMEs) and start-ups in China list and trade their shares.
Many institutional investors are already diverting their attention to shares traded on these two boards, which slumped heavily for the past year but are now beginning to present investment opportunities.
Of those shares listed on the SME board and ChiNext board before 2017, 81.95 percent and 90.15 percent respectively are still below their market prices as seen early last year.
In 2018, northbound investments have continuously been buying these shares via the Shenzhen-Hong Kong Stock Connect program. Of the top ten shares ranked by net purchases under this program, five belong to the SME board and ChiNext board.
Public mutual funds are also heavy buyers. Of the top 20 listed companies, ranked by the ratio of shareholding by funds in their total circulated shares, ten are listed on the SME board and ChiNext board.
Such huge interest in the SMEs and start-ups is to some extent thanks to the support by their major shareholders and the industry funds.
Out of the 2,003 cases of shareholding increases up to Thursday, 1,293, or 64.45 percent, belong to the SMEs and start-ups.
For the first week of February, 179 shares at the SME board and the ChiNext board witnessed increased holdings by industry funds, in contrast to 97 shares at the main board.
Some shareholders were wise to increase their holdings at low costs, which would not only yield returns but also expand their leverage in the company, as commented by an investment expert in Shenzhen.
There would be a divergence among the SME shares and ChiNext shares, under which the "Nifty Fifty" would win favor with investors, while those founded only on concepts and speculations would be shunned by them, according to another expert.
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