On July 22nd, with the sound of the opening gong, the first batch of 25 Science and Technology Innovation Board shares began to be traded on the Shanghai Stock Exchange, and Science and Technology Innovation Board officially opened the market. By the end of the day, 25 companies had risen an average of about 140% on the first day, with Anji Technology leading the way, up about 400%. The turnover of 25 companies totaled more than 48 billion yuan, of which the turnover of China General account was nearly 10 billion yuan. The average turnover rate of 25 companies is about 77%, of which the turnover rate of Anji Technology is more than 86%.

By the close, 25 companies were trading at an average price-to-earnings ratio of about 120 times earnings. Citic Construction Investment said that the high turnover rate has fully expressed the differences among investors, which also means that the market liquidity is good and the pricing efficiency is greatly improved.

The following is the full text:

Events:

Science and Technology Innovation Board's first batch of 25 stocks soared across the board, with a total turnover of nearly 50 billion. By the close, 25 companies had risen an average of 139.5% on the first day.

Brief comments:

1. Science and Technology Innovation Board's overall performance is excellent.

Judging from the performance of the current market, the first batch of listed science and technology-based enterprises have excellent performance and active trading. The average rise of the 25 Science and Technology Innovation Board stocks was 139.5%. Among them, the highest increase was in Anji Technology, with an increase of 400%, while the lowest increase was in Xingguang Optoelectronics, with an increase of 84%. 16 Science and Technology Innovation Board enterprises have increased by more than 100%.

In terms of liquidity, Science and Technology Innovation Board's first-day turnover rate is more than 65%. Those with turnover rates of more than 80% are Anji Technology, Cardiac Healthcare, Western Superconductor and Platte. The high turnover rate makes the differences among investors fully expressed, which also means that the market liquidity is good and the pricing efficiency is greatly improved.

Science and Technology Innovation Board's overall excellent performance on the first day reflects investors' optimistic attitude towards Science and Technology Innovation Board. We are optimistic about China's economic, scientific and technological innovation and long-term investment opportunities.

2. Intra-day trading reflects a significant improvement in pricing efficiency

From the perspective of intra-day trading, the whole trading process can be divided into three stages. The first stage was between the opening of trading and 10:00. Science and Technology Innovation Board opened with an average increase of 141%. Because the valuation exceeded the industry average, some investors chose to sell in batches, and the market was temporarily suspended for the first time. At 10:00, the average of the 25 stocks rose 85 per cent. The average turnover rate is about 30%.

The second stage closed from 10:00 to 11: 30 am, and the market resumed its post-pullback rally. As of 11: 30, the average increase of 25 companies was 159.6%, reflecting the long-term optimism of investors. The rise of Anji Science and Technology was the first to touch the second temporary suspension, with an increase of more than 400%. Western Superconductor and Cardiac Medical Services also rose rapidly, and Science and Technology Innovation Board's overall performance was excellent. Judging from the turnover rate, the turnover rate reached more than 50%, the turnover rate of Anji Technology reached 71%, and that of Western Superconductor reached 67%.

The third stage is from 1pm to 3pm. Science and Technology Innovation Board as a whole has entered a state of smooth operation. The performance of the market was stable and the turnover rate increased slightly. The price of the stock gradually converges to its value.

In addition to the turnover rate, we note that Science and Technology Innovation Board's temporary suspension has fully played a role in price stability. After falling 30% in the morning, shares were temporarily suspended, investors resumed trading after calm consideration, and prices rose again during the day. After the rise reached the temporary suspension, prices no longer rose rapidly and did not appear to be too extreme. The temporary suspension mechanism helps to stabilize the market.

3. Observation of after-hours trading

From the perspective of after-hours trading, the volume of after-hours trading of 25 stocks is less than that of intraday trading. This confirms from the side the effect of Science and Technology Innovation Board's first day pricing efficiency greatly improved.

4. Science and Technology Innovation Board and the performance of the motherboard

The trend of the motherboard and Science and Technology Innovation Board appeared a certain differentiation, which is mainly due to the fluctuation formed by short-term capital flows. The performance of traditional value sectors such as banks, real estate and home appliances on the motherboard is still good. The decline of enterprises with sustained good profitability on the motherboard is relatively small, and the launch of Science and Technology Innovation Board has formed a further role of eliminating the fittest on the poor stocks in the motherboard.

The Futures Chronicle Board and the main Board will show characteristics similar to the New York Stock Exchange and Nasdaq markets, both of which are out of the long-term bull market. Fully reflect the achievements of economic cycle movement and scientific and technological innovation in the process of economic development driven by scientific and technological innovation.

5. Investment strategy

Science and Technology Innovation Board's overall performance on the first day was very excellent, and the market pricing efficiency was higher than that of the existing A-share market. We are optimistic that China's scientific and technological innovation will drive economic development for a long time. The semiconductor industry represented by chips, the computer industry represented by operating system and cloud computing, the communications industry represented by 5G, the biomedical industry represented by innovative drugs, the high-end equipment manufacturing industry represented by precision instruments, new energy and new materials all have long-term opportunities.

From the perspective of institutional investors, we suggest that investors should do a good job in professional division of labor and participate in long-term investment after doing a good job in the research of science and technology industry. We are optimistic about the long-term opportunities for scientific and technological innovation brought by Science and Technology Innovation Board. From the perspective of individual investors, Science and Technology Innovation Board put forward higher requirements for risk tolerance, research level and trading skills. Individual investors participate in the gem investment through funds and other financial products.