China's new board for start-ups kicked off with a bang on Friday, as listing pioneer Zhejiang NHU and most of the other seven debutantes more than doubled from the outset.
Investors flocked to the growth board - which Beijing views as a precursor to a true Chinese Nasdaq - in the go-go southern city of Shenzhen, partly because of a stubborn pall hanging over the main markets, traders said.
The benchmark Shanghai composite index is down 20 percent from early April, hit by Beijing's steps to cool the economy and fears of an imminent interest rate rise.
Shanghai shares ended the morning session down 0.26 percent.
"We can see enormous speculation on the new board now. That's really risky," said Lu Wei, a trader at East Asia Securities.
"We expect most of the stocks will fall back soon as they are now way over-valued."
All eight fell back shortly after their debuts. The Chinese consider eight a lucky number, because it sounds similar to "prosperity".
Zhejiang NHU, a vitamin maker that was the first to launch an IPO for the board, opened up 109.5 percent at 28.10 yuan. It had fallen back slightly to 28.0 yuan by the lunch break, but still far exceeded its IPO price of 13.41 yuan.
Over-valuations have never stopped Chinese investors, infamous for being trigger-happy punters.
The main markets are trading at nearly 30 times historic earnings - about double the levels in more transparent Hong Kong's.
A new Nasdaq-style exchange - with more lenient listing criteria - should help cash-strapped start-ups and private firms raise capital, analysts said.
The board's architects hope it will be hived off into a separate exchange.
If that happens, it may help resolve a perennial complaint among entrepreneurs, which have emerged as a pillar of the economy, especially in the booming coastal regions.
For now, the broader Shenzhen bourse carries the same stringent listing criteria for the markets.
Friday's debutantes are involved in a range of businesses from drugs to plastics to zippers and buttons. Only two are based in the southern province of Guangdong, home of the Shenzhen bourse.
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