According to Huatai Securities, the launch of the STAR Market will eventually nurture a complete valuation system for technology companies. In the long run, the investment eco-system of A-share technology companies will be improved.

Analysts from GF Securities wrote in a note that the STAR Market did not draw significant liquidity from the other boards during its first week of trading. On the contrary, the impressive trading results on the new board boosted the trading volume of the overall market.

Looking forward, the price fluctuations of STAR Market listed companies will start to contract. Their performance will be polarized in the next weeks, according to the note.

From the mid-to long-term perspective, the STAR Market will result in the rebound of investors' risk appetite, said Chu Zhipeng, an analyst of the secondary market research at Shanghai-based financial service provider Noah Holdings Ltd. This will in turn elevate the valuation of the main board of the A-share market.

The corresponding pickup in the ChiNext in Shenzhen trading house will be more evident, said Chu. Such a conclusion is based on the stronger performance of the SME Board three months after the ChiNext was launched in 2009.

"The innovations that the new tech board has ushered in concerning issuing, trading, delisting information disclosure will be an important example to refer to when China carries out its capital market reform. If the registration-based IPO mechanism can be applied to the other existing boards, the valuation of A-share market will be further boosted," he said.

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