The price drops in particular are very rare in new listings in China, which is aiming to help the country's small firms access capital quickly through the special IPO platform and grow the next generation of innovative companies.
China reformed the moribund New Third Board this year as part of efforts to channel much-needed capital into innovative private start-ups in a coronavirus-ravaged economy. The private sector accounts for 80% of China's urban jobs. The New Third Board is also designed to become a feeder for bigger stock markets, including Shanghai's STAR Market, and Shenzhen's ChiNext, as regulators seek to build a multi-tiered capital market.
The New Third Board, which has been struggling for relevance after the initial enthusiasm faded away, has made some headway in attracting more investors.