Original title: The issuance price is too high, and the trend of stocks on the Science and Technology Innovation Board has begun to break. It is still profitable to start new companies. Recently, the trend of stocks on the Science and Technology Innovation Board has broken out "unexpectedly."

As of November 20, there are 4 new stocks on the Science and Technology Innovation Board that have broken their shares this month, namely Jiuri New Materials, Rongbai Technology, Jept and Tianzhun Technology.

Among them, Jiuri New Materials broke on the second trading day after listing, and Jept. broke on the 8th trading day.

"It is normal for listings to break. The first-day break rate of new stocks in mature overseas markets such as Hong Kong stocks and Nasdaq is 30%-40%. It is expected that companies on the Science and Technology Innovation Board will still have a break in the future." Relevant person in charge of Wanjia Fund

Said to a reporter from China Times.

The main reason why stocks on the Science and Technology Innovation Board have broken is that the issue price is too high.

The market's ability to return to rationality in a short period of time is related to the market-based inquiry mechanism of the Science and Technology Innovation Board.

Institutional funds will also pay more attention to the company's fundamentals and valuation levels to give more reasonable quotes.

Generally speaking, the break has little impact on the new strategies of public and private equity.

"There are currently not many stocks that broke the IPO price on the first day of listing, and most stocks still achieved a certain first-day gain." Feng Tingting, president of Zhanbo Investment, told a reporter from China Times.

The issue price is too high and the issuance break is a normal phenomenon. In November, there was a "breakout wave" of stocks on the Science and Technology Innovation Board.

Among them, two stocks on the Science and Technology Innovation Board "joined hands" to break the stock price on the same day.

On November 6, Haohai Biotech (688366.SH), which has only been listed for 6 trading days, opened at 88.53 yuan/share, falling below the issue price of 89.23 yuan/share.

As a result, Haohai Biotech became the first stock on the Science and Technology Innovation Board to fall below its issuance price.

On the same day, Jiuri New Materials (688199.SH) closed at 66.35 yuan/share on its second trading day, falling below the issue price of 66.68 yuan/share.

Since then, the stock price of Jiuri New Materials has continued to decline. As of November 20, 2019, it closed at 60.46 yuan per share.

On November 7, affected by the failure to pay 206 million notes receivable when due, Rongbai Technology (688005.SH) resumed trading and opened 14.32% lower, opening at 26.50 yuan/share, falling below the issue price of 26.62 yuan/share.

The incident continued to ferment. As of November 20, Rongbai Technology closed at 23.21 yuan per share.

On November 11, Jept (688025.SH), which has only been listed for 8 trading days, closed at 43 yuan/share, lower than the issue price of 43.86 yuan/share.

Subsequently, the stock price continued to decline, and as of the close of November 20, it was reported at 40.65 yuan/share.

On November 11, Tianzhun Technology (688003.SH) closed at 25.39 yuan/share, falling below the issue price of 25.5 yuan/share.

As of November 20, Tianzhun Technology closed at 25.26 yuan per share.

The market value of Tianzhun Technology fell from a high of 13.8 billion yuan to 4.848 billion yuan, a shrinkage of 8.952 billion yuan.

As of November 20, there are 4 new stocks on the Science and Technology Innovation Board that have broken their shares, namely Jiuri New Materials, Rongbai Technology, Jept and Tianzhun Technology.

"The IPO of the Science and Technology Innovation Board is the process of the capital market returning to rationality, and it also plays the role of gradually improving the market's own price discovery mechanism under the guidance of the registration system. The IPO of the listing is normal, and the first day of new stocks in overseas mature markets such as Hong Kong stocks and Nasdaq

The breakout rate is 30%-40%, and it is expected that companies on the Science and Technology Innovation Board will still have a breakout in the future," the relevant person in charge of the above-mentioned Wanjia Fund told a reporter from China Times.

"Breaks are normal, and they are common in the Hong Kong market. Breaks more often indicate that the company has not gained market recognition." A person from a private equity company in Beijing told a reporter from China Times.

The main reason for the break is that the issue price is too high.

Chen Guoguang, fund manager of Tianhong Fund's stock investment department, believes that the establishment of the Science and Technology Innovation Board and the pilot registration system have implemented market-based pricing for new share issuances. On this basis, it is normal for new shares to break the issuance price. The main reason is that the issuance price of some new shares is too high.

Shen Zhengyang, a senior investment consultant at Northeast Securities, said that it is inevitable for new stocks with excessively high issue prices to revert to the mean under the background of the registration system.

The valuation gap between the primary and secondary markets has narrowed, and innovation is still profitable. "With the accumulation of breaks, the valuation gap between the primary and secondary markets will gradually narrow, helping the domestic capital market to achieve true marketization." The above-mentioned Wanjia Fund

The relevant person in charge told the China Times reporter.

Shen Zhengyang believes that the breakout of new stocks on the Science and Technology Innovation Board means that although ordinary investors can continue to invest in the short term, they need to lower their growth expectations in the secondary market and strictly control risks.

What impact does the break have on the new strategies of public and private equity?

"Overall, the impact is not big. Generally speaking, there are not many stocks that have broken the first day of listing. Most stocks still achieved a certain first-day increase.