China’s new tech market has already made three billionaires
China’s new Nasdaq-style market has already propelled three tech executives to billionaire status.
The three men hold stakes in companies that ballooned in value when the Star Market in Shanghai began trading Monday. The 25 stocks on the market gained 140% on average the day of the debut, before retreating slightly Tuesday. They were higher again Wednesday on optimism that US-China trade talks will resume next week.
The founder and chairman of Suzhou HYC Technology, Chen Wenyuan, is worth about 15 billion yuan ($2.2 billion) based on Wednesday’s share price. The 51-year-old’s firm manufactures testing equipment for panel displays and integrated circuits for companies and counts Apple and Samsung as clients.
Shares of Suzhou HYC Technology jumped 3.4% early Wednesday. The stock is now up more than 100% from its IPO price.
Cao Ji, the 67-year-old chairman and general manager of Zhejiang Hangke Technology, holds shares that are now worth about 13.45 billion yuan ($2 billion). That company, which he founded in 2011, makes testing equipment for lithium batteries used in electric cars.
Shares surged 4.1% Wednesday, and the stock is up nearly 70% from its offer price.
And Hui Deng, the founder and chairman of ArcSoft, has a fortune worth 7.2 billion yuan ($1.1 billion) based on the value of his stake in that company.
ArcSoft is an imaging software company using AI technology, and its shares advanced 2% Wednesday. It’s now up more than 100% from the IPO price.
Chen and Cao’s wealth surpassed the billion-dollar mark when the offer price for each of their companies was set, though this week’s surge gave a big boost to their valuations. Deng’s stake reached $1 billion when shares rallied Monday.
The Shanghai stock exchange’s new index represents one way China wants to bid for tech superpower status. The initiative was unveiled less than a year ago by President Xi Jinping.
Beijing hopes Star will help China’s high-tech companies tap into vast wealth held by local investors, and entice global leaders such as Alibaba and Tencent to return from stock markets in New York and Hong Kong.
Of the 25 companies that began trading Monday, 24 were listing for the first time. Twenty-four of the 25 stocks were trading higher Wednesday.