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Banking & Finance

Prices rocket on Day 1 of Shenzhen's second board

Prices shot through the ceiling as the first eight stocks debuted on Day 1 of trading on Shenzhen's SME board, adrenalin pumping up one stock, Han's Laser Technology, 324.8%. Second board turnover on the first day climbed to RMB 3.5 billion, more than a quarter of the daily turnover generated by China's two established boards, which have 1,320 listed companies combined. Han's Laser Technology started the day with an offer price of RMB 9.20 and closed at RMB 39.09. Elec-Tech International was the day's slowpoke, gaining only 42.4%. Starting with an issue price of RMB 18.20, Elec-Tech closed the day at RMB 25.91. An analyst quoted in one report said the SME board's debut resembled a casino opening.

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