China start-up stocks plunge on profit-taking
More than two-thirds of the shares listed on China's newly launched Nasdaq-style board ended limit-down on profit-taking Monday, in only the second session after a wild debut last week, dealers said.
Twenty of the 28 stocks listed on the Shenzhen-based ChiNext fell by the daily trading limit of 10 percent, and analysts said there was room for further correction.
"Significant risks are brewing in the board in the mid-term. Individual investors should assert extra caution," said Mao Nan, an analyst with Orient Securities.
The chairman of the China Securities Regulatory Commission, Shang Fulin, has cautioned ChiNext investors to trade in a "rational" way, saying the board faces a higher risk of speculative trading.
Chengdu Geeya Technology Co Ltd -- which posted the biggest gains in the board's Friday debut by finishing up 209.73 percent from its initial public offering (IPO) price -- were down 10 percent at 31.5 yuan (4.6 dollars).
Sichuan Jifeng Agricultural Machinery Chain, one of the only two gainers, rose by the daily trading limit of 10 percent to 38.84 yuan.
Anhui Anke Biotechnology (Group) Ltd, which soared nearly 200 percent from its IPO price in Friday's debut, gained 3.53 percent to 51.85 yuan.
The benchmark Shanghai index closed up 2.70 percent to 3,076.65 on strong October manufacturing data. Pharmaceutical makers led the way on the main board, rallying on expectations for brisk sales amid flu season.
Copyright 2009  AFP Global Edition
