Category: Money tips Release Date: 2006-01-08
Shares "double high" Too Heavy to Bear Market?
Background:
A-share market shares issued high-premium, super-premium prices almost become routine, from work to the Web-sheng international science and technology, from Datang Power to the Guangzhou-Shenzhen Railway, who did so, often breaking new shares to institutional investors pricing expectations.
Leads Topics:
Issuance of new shares a high premium, ultra-high-priced listing of "double high" phenomenon a long time, in the current market, rose sharply after the new shares "double high" in the end is the scenery is infinitely good, or mad? "Double high" owners will become the first force to lead the market adjustment?
All comments
Square
IPO issue price of breaking the high positioning under the rational pricing expectations, but also contrary to the issuance of new shares to the market to bring fresh blood and new investment opportunities in basic principles. The high positioning of new shares changed and secondary market investors profit distribution between the structure of the subscription of new shares to acquire a higher risk-free situation, A-share market will further facilitate the adjustment of capital flows to a secondary market, the market and further exacerbate the financial pressure on the secondary market.
IPO risk is gradually emerging high-priced, IPOs Gaokaidizou is the best comment on this risk. Datang power generation and the recent high-profile listing of the Guangzhou-Shenzhen Railway, the sharp fall, which greatly affected the market sentiment on the broader market into larger downward traction beyond a reasonable valuation of the high positioning of the new shares are likely to be the first to lead the market adjustment of the emergency peak.
Broker to listed companies issuing new shares to earn a substantial distribution costs, and artificially raised the opening price and the stock price, as long as there are investors buying the stock issuance out of the task is complete, issue the more the costs to earn the more, but who will guarantee the quality and performance of these companies do?
Anti-side
The reason why high-priced shares listed, of course, a mechanism reasons, but in general or the market have the final say, some new shares relatively high position, is conducive to enhancing the overall valuation of the same plate. For example, Datang high positioning, also shows the existence of market power in the phenomenon of undervalued blue chip, market-depth excavation.
Stir-IPO market, resulting in high positioning of new shares to form a strong hot spots, which is certainly beneficial pulled sentiment. Early on the Hong Kong, North Star, move the ship's performance has proved that these hot IPO market of the positive stimulus than negative effects. Even a substantial drop in these stocks during the market impact is not imagined so much. Therefore, high positioning of new shares is no need to panic too much.
