A Chinese medical instrument manufacturer surged by 2,932 percent on its debut on China’s ChiNext board today, among a flood of new offerings trading under revamped rules that remove daily price limits for new stocks. Contec Medical Systems Co rocketed by 2,932 percent from its IPO price before paring to end trading 1,061 percent higher. The ChiNext index closed 2 percent higher after falling by 1.5 percent earlier. “Many had expected a big slump under the new trading rules,” said Hao Hong, chief strategist for Bocom International in Hong Kong. The ChiNext trades at nearly 38 times forward 12-month earnings versus a 14 multiple for the CSI 300 index.

Source: The Standard August 24, 2020 08:26 UTC