Examples of SZSE ChiNext in a sentence
The rules and guidance on listing, trading, disclosure and other matters of SZSE ChiNext vary much from those of the SZSE main board and SME board.
When the industry is experiencing rapid technological development and replacement, its product may be obsolete and may not survive in the market.Investors should also refer to the standard Risk Disclosure Statement (in Chinese only) in the Investor Eligibility Implementing Measure of ChiNext Market which Mainland investors are required to acknowledge before trading in SZSE ChiNext market.
Certain funds may have exposure to stocks listed on SME board of the SZSE, ChiNext market of the SZSE and the STAR Board of the SSE.Higher fluctuation on stock prices and liquidity riskListed companies on the SME board, ChiNext market and/or STAR Board are usually of emerging nature with smaller operating scale.
Additionally, it should also be noted that there are fewer circulating shares in SZSE ChiNext and so stock prices may be at greater risk of manipulation and may experience higher fluctuation as a result of market speculation.
Emerging nature of SZSE ChiNext companies Given the emerging nature of companies listed on SZSE ChiNext, there is a risk that the securities traded on SZSE ChiNext may be susceptible to higher market volatility compared to securities traded on the main board market.
Delisting risk The companies listed on SZSE ChiNext are generally less resistant to market risks and may experience more fluctuations in their performance.
As a result of this, it may be more common and faster for listed companies in SZSE ChiNext than companies listed on main board and SME board of SZSE to delist.
Finally, as a result of the emerging nature of SZSE ChiNext and the fact that it has less track record on profitability, the stocks traded on SZSE ChiNext may be overvalued and any high valuation may not be sustainable.
Higher fluctuation on stock prices Listed companies in SZSE ChiNext are usually in their preliminary stage of development have a smaller scale and shorter operating history and their stability and resistance to market risks may be lower.
Valuation risk Conventional valuation methods used for companies may not be entirely applicable to companies listed in SZSE ChiNext because of the risky nature of the industries/sectors that these companies may operate in.