(Yicai Global) July 1 -- Around four million investors are expected to trade on Shanghai Stock Exchange's Sci-Tech Innovation Board, otherwise known as the SSE STAR Market, once it starts trading in two months' time, according to Liu Ti, deputy general manager of the SSE.
Some 30 firms will be listed at first, each with a valuation of around CNY1 billion (USD146 million). Individual investors are estimated to invest around CNY250 billion and together with foundations and other funds investment is expected to top CNY400 billion, Liu said while attending the 2019 Forum for Chinese Listed Companies held on June 29 in Shanghai.
The board was launched at the 11th Lujiazui Forum last month and already 2.7 million accounts have been opened. Liu warned that supply is likely to fall short of demand in the beginning and that traders must be prepared for big fluctuations in the market in the early stages.
It will take some time for the trading mechanisms to be perfected, Liu noted. An overall assessment of the board will be carried out after a period of time and improvements such as introducing trading arrangements for big orders, a market business mechanism and a price fluctuation adjustment mechanism will be made. It is important to make the market more inclusive and to improve the regulation of illegal activities, he said.