Chinese startups soar in Shenzhen market debut under new IPO rules

One stock surges 3,000% in ChiNext midday trading; revamp hopes to rival Nasdaq

Chinese authorities have been easing rules for initial public offerings as part of Beijing's efforts to reform the country's stock markets and channel capital toward startups. © AP

NARAYANAN SOMASUNDARAM, NIKKI SUN and GRACE LI, Nikkei staff writers

August 24, 2020 09:01 JST

Updated on August 24, 2020 22:46 JST

HONG KONG -- More than a dozen companies making their debut on the Shenzhen Stock Exchange's ChiNext market under new IPO rules soared on Monday, with one stock skyrocketing nearly 3,000% in intraday trading, a hopeful sign to hundreds of other Chinese companies eyeing listings on the Nasdaq-style board just as access to U.S. capital markets shuts down.

Twenty-nine companies have been approved for flotations so far, including the 18 that listed on Monday, according to the Shenzhen exchange's website. Those 18 have raised 20 billion yuan ($2.9 billion), the Nikkei Asian Review has calculated, based on their prospectuses.