As China’s new Nasdaq-style tech board approaches the end of its first week of trade, fund managers are offloading their holdings to hungry retail investors and locking in bumper profits, said Reuters.
Valuations on Shanghai’s STAR Market, which debuted on Monday, have also triggered short selling from Chinese traders betting that shares will fall.
According to exchange data, trading in the 25 STAR Market companies that listed this week – ranging from chip-makers to healthcare firms – totaled RMB 48.5 billion ($7.05 billion) on their debut, accounting for roughly 13% of turnover in all of China’s stock markets, which include nearly 4,000 listed companies.
Retail investors did most of the buying, accounting for more than 90% of such transactions, while institutional investors, including fund houses and insurers, accounted for most of the sellers.
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