Category: Money tips Release Date: 2006-01-09
Source: Xiao Yu Hang Jiuding Allianz
Judging from the recent issue of high price-earnings ratio Bank of Nanjing, Ningbo and other firms look at four new shares, offline and online financial institutions to actively come forward purchase. 247 from the Bank of Nanjing, Bank of Ningbo 338 Network investors look to be allocated under the Placing, which show an obvious body figure. LOF funds, large state-owned corporate finance group, hundreds of securities investment funds, insurance funds, securities companies, listed companies in which Bank of Nanjing under the net as a success rate of 0.996 percent, Ningbo firm a success rate of 0.58%, which is much higher on the same stock online purchase 0.60134614% and 0.4732%, in the SME board of new shares under the net purchase ultra-Rong-sheng also appeared in Stanford University and the Fortis Bank QFII institutions figure, although the participation of foreign institutions under the net and on-line subscription of new shares and small, but new shares, or over unbeaten opening has attracted foreign investors to join them mature.
Should be said that the Chinese A-share market investors to participate in new share subscription is an option, but the key is that so many institutional investors to engage in high price-earnings ratio offering price, its market is still able to bring about such a large rise, I am afraid only the Chinese A Shares the market and away from the universality of such inquiry to happen, the harm would be embodied in the future. Institutions to a stock company for public inquiry, it has identified the issue price of the already shows a stage of the company's investment value or valuation standards, but it is regrettable that, due to interest or interest-driven association of new shares, its market is often far from Inquiry arising from its stock price, no wonder the Chinese A-share market the issue of some stocks hundreds of times P / E after the listing can still rise, so the overdraft or manufacturing phase behavior of the bubble in China A-share market for the future a larger planted market risks. This year, with China Life, Ping An of China, CITIC Bank, the main issue of state-owned large-cap stocks price-earnings ratio hit a new high stack, listed on the secondary market opened high, in fact, it is easy to cause or has caused an overdraft of future performance and excessive growth, forming a distorted prices, although its investment income benefits rise, driving P / E down, but not all companies are this way, moreover, investment income of great uncertainty. Recently listed Topband Electronics ascribed to 71 per, and one-quarter EPS is only 0.02 yuan, this phenomenon has been a reflection of the current IPO phenomenon of the high price-earnings ratio for the A-share market has evolved a market bubble, and those with H shares A shares of the company's IPO price-earnings ratio is high the phenomenon more apparent. New issues such as the recent listing of China COSCO to issue up to 98 times earnings, while the market opened higher after the formation of several hundred times the price-earnings ratio, despite the injection of large shareholders may, but results overdraft has been formed, I believe the future for the market correction. IPO shares inquiry over the pricing bit easier to achieve multiple gains, so that the performance would lead to an increasing number of agencies involved in purchase of new shares under the net movement is no wonder that many listed companies to spend lots of money into the purchase of new shares.
Institution of choice of funds is a reasonable valuation of the varieties of investment in Hong Kong and the United States securities market, issuing new shares price-earnings ratio has remained at a reasonable level and retail purchase of effective policies, in general, a number of new shares after the listing below the issue price of a minority, it is less chance of over-deviate from the IPO price behavior, because the market price formation depends on the performance and future performance and returns, and the current China-listed shares on the one hand the high price-earnings ratio overdraft performance issue, on the other two markets for its super-premium income, basically become a risk-free return, the opening price distortions in the interests of a larger institutional level was the behavior of parties, no wonder there are about 200 billion bank financial management of funds dedicated to fight for new shares, and the play does not cap the high-yield; while a large number of finance companies, listed companies, insurance agencies Trillions of dollars of funds are keen for Yao Hao, which is a capital market anywhere in the world than are reflected in a clear deviation and abnormal behavior, the recent purchase of new shares market funds maintained at 2 trillion , while the Shenzhen and Shanghai stock market turnover of less than the sum of 100 billion yuan in sharp contrast.
As the new shares subscription pricing and effective policies and interests has led the undefeated and the IPO shares accelerated and other reasons, institutions are still involved in the pace of new shares to increase the institutional capital markets to increase the participation of new shares in its IPO price inquiry to determine the full enjoyment of the latter opening of IPO bubble, its participation in the enthusiasm will continue to increase, the crowding together of new shares end depends on policy changes and the maturity of China's stock market. But one thing investors should pay particular attention to create varieties of post-bubble, if the performance and returns can not keep up, and its Chinese A-share market long-term damage will be reflected in the future.
