Chinese companies trading in Shenzhen, the country’s technology hub, have been underperforming those listed in Shanghai this year, a trend that underscores the delisting risk faced by smaller companies and investors’ penchant for big industry leaders amid a challenging macro environment.
The Shenzhen Composite Index, which is largely made up of small-capitalisation stocks including tech start-ups on the ChiNext board, has dropped more than 7 per cent since the start of the year. That compares with a 1.9 per cent gain in the Shanghai Composite Index, which is dominated by more established companies in the traditional industries.
The…
