ChiNext Creates China Billionaires as Overhang Looms

As China’s version of the Nasdaq Stock Market marks its first anniversary tomorrow, many investors have little reason to celebrate.

An index of 100 companies that trade on Shenzhen-based ChiNext, China’s main market for start-ups, has gained 6.7 percent since the gauge was introduced on June 1, trailing the 17 percent advance for the Shanghai Composite Index. ChiNext’s companies are still about three times as expensive as the average Chinese stock relative to earnings, according to data compiled by Bloomberg.