A flood of new offerings on China’s ChiNext index began trading under revamped rules that remove daily price limits for debut shares, testing investor demand for the already pricey gauge. A batch of 18 companies, ranging from electronic product manufacturers to medical instrument makers traded for the first time under so-called registration-based initial public offerings, Bloomberg reports. Ningbo KBE Electrical Technology surged by 433 percent on its first day, while Contec Medical Systems gained 413 percent as of 9:36 a.m. Yet demand for new shares may suck funds from existing equities which are looking expensive after the index surged almost 50 percent this year. New share sales won’t be subject to price caps in the first five trading days, while daily limits on existing stocks will double to 20 percent.

Source: The Standard August 24, 2020 01:52 UTC