Caixin
Jun 07, 2022 07:07 PM
FINANCE

Caixin Explains: Why Newly Listed Chinese Stocks Fall Below Their IPO Prices

Investing in Chinese IPOs was once hailed as the safest of safe bets, with guaranteed huge returns to investors. The rationale was that the stock of a newly listed company would almost certainly rise well above its offer price, a pattern that had held true in most cases for many years.

But this formula has not always seen success in recent times.

This year as of April 20, 62 out of 107 companies that went public on the Chinese mainland saw their share prices drop below their offer prices, with nearly half of the 62 stocks trading on Shanghai’s Nasdaq-style STAR Market, according to Caixin’s calculations.

You've accessed an article available only to subscribers
VIEW OPTIONS
Share this article
Open WeChat and scan the QR code
NEWSLETTERS
Get our CX Daily, weekly Must-Read and China Green Bulletin newsletters delivered free to your inbox, bringing you China's top headlines.

We ‘ve added you to our subscriber list.

Manage subscription