An investor watches stocks on a monitor at a local trading center in Nanjing, East China's Jiangsu Province on Friday. Photo: VCG

The first batch of high-tech shares on China's new stock board are expected to gain significantly on the first day of trading on Monday, and some companies may double their IPO prices, market analysts said on Sunday.

But volatility will decrease in the days and weeks ahead, as investors are still cautious about possible risks in the initial trading period, according to analysts and some overseas financial institutions.

The new Science and Technology Innovation Board, or the SSE STAR market, begins trading on Monday. The board, which is dedicated to technology start-ups in China, is one of the country's boldest attempts to reform its capital markets by adopting a market-oriented registration-based IPO system. 

At a time when some Chinese tech giants are caught in a crossfire amid trade tensions and fight for technological supremacy between China and the US, the new board creates a channel for Chinese tech companies to raise funds from investors. 

The first batch of 25 high-technology enterprises set to debut on the board range from lithium battery material makers to machine vision intelligent manufacturing companies and companies that produce rail transit operation control systems. 

Those companies were actively chased by capital during the IPO process. For the 25 companies, the average price earnings ratio, or P/E ratio, is 53.4, compared with the 23 average IPO P/E ceiling on the A-share markets. More than 80 percent of them will raise more than their initial targets, according to media reports. 

In a report sent to the Global Times, the UBS Securities China Equity Strategy team said that it "actively mobilizes resources to dig out and cultivate high quality tech-innovation companies" in China. 

"UBS Securities has sponsored a bio-pharmaceutical enterprise (HaoHai Biological Technology) to list on the STAR market. UBS Securities is also working on a pipeline of other STAR market-related IPO projects," the company disclosed. 

Nomura Holdings also revealed plans to participate in the STAR market in various ways in the future. Toshiyasu Iiyama, executive vice president of Nomura Securities Co, said that Nomura "looks forward to continuing building on ... connections and sharing ... experiences to help tech companies grow more rapidly and healthier within the Chinese market and globally," according to a email statement the company sent to the Global Times. 

Yang Delong, chief economist at the Shenzhen-based First Seafront Fund Management Co, forecast that with investment capital chasing the new listings, most of the 25 stocks will rise significantly on the first trading day. 

"I think the chances are greater that none of the 25 stocks will slip below their IPO prices on the first trading day," he said on Sunday. 

"Pricing volatility on the new board will be the strongest on the first trading day, and the fluctuation range will gradually dwindle after that," Li Daxiao, chief economist at the Shenzhen-based Yingda Securities, told the Global Times on Sunday.

Li also said that because of the board's eased limitations on trading limits, which amplifies risks, many investors are still hesitant about buying STAR shares. The STAR board has no trading limit in the first five trading days and a 20 percent daily trading limit thereafter.  

UBS Securities said that some offshore institutional investors it had spoken with indicated a preference to stay out of the initial expected volatility. 

Li also said that since the official trading of the STAR bourse had long been expected, it won't trigger a plunge on the main board.