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Monday, 18 January 2010
Latest batch of IPOs on ChiNext fails to match earlier interest
The latest batch of companies to debut on the mainland’s start-up board trailed first-day gains of earlier listings on the two-month-old market - as the nation’s central bank began to roll back monetary stimulus.
Latest batch of IPOs on ChiNext fails to match earlier interest
Bloomberg 09 January 2010
The latest batch of companies to debut on the mainland’s start-up board trailed first-day gains of earlier listings on the two-month-old market - as the nation’s central bank began to roll back monetary stimulus.
Shenzhen Capchem Technology rose 45 per cent to 42 yuan (HK$47), leading gains by the eight companies that debuted on the board for start-up companies yesterday.
That lagged Beijing SuperMap Software’s 64-per cent surge in its ChiNext debut on December 25. The first group of companies to debut on the board in October more than doubled on their first trading day.
A surge in initial public offerings on the mainland, since regulators ended a 10-month moratorium on IPOs in July, had dampened investor demand for new shares, said Tang Wanshan, a Suzhou-based analyst at Soochow Securities.
IPOs on the mainland raised 206 billion yuan last year, a 50 per cent increase from 2008, as companies took advantage of an 80 per cent rise in the benchmark Shanghai Composite Index.
“The relatively subdued first-day trading gains are a reflection of the increasing number and faster pace of listings on ChiNext at a time when concerns are increasing about the government tightening liquidity,” Tang said.
Companies may raise 320 billion yuan in IPOs this year, according to PricewaterhouseCoopers. More than 70 companies are currently awaiting approval for their IPOs from the China Securities Regulatory Commission.
China National Chemical Engineering rose 5.9 per cent in its Shanghai debut on Thursday. China CNR gained 2.3 per cent on its first trading day in Shanghai on December 29.
Regulators imposed a moratorium on IPOs in September of 2008 after the Shanghai Composite Index fell 56 per cent in the first eight months of the year.
China’s central bank on Thursday sold three-month bills at a higher interest rate for the first time in 19 weeks after saying its focus for 2010 was controlling the record expansion in lending and curbing price increases. The Shanghai Composite Index fell the most in two weeks that day.
“The government wants the stock sale to play a bigger role in the funding of companies this year, reducing risks for and pressure on banks to make loans,” said Zhang Ling, at ICBC Credit Suisse Asset Management.
Xinghui Auto Model and seven other companies are also awaiting ChiNext trading debuts.
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Latest batch of IPOs on ChiNext fails to match earlier interest
Bloomberg
09 January 2010
The latest batch of companies to debut on the mainland’s start-up board trailed first-day gains of earlier listings on the two-month-old market - as the nation’s central bank began to roll back monetary stimulus.
Shenzhen Capchem Technology rose 45 per cent to 42 yuan (HK$47), leading gains by the eight companies that debuted on the board for start-up companies yesterday.
That lagged Beijing SuperMap Software’s 64-per cent surge in its ChiNext debut on December 25. The first group of companies to debut on the board in October more than doubled on their first trading day.
A surge in initial public offerings on the mainland, since regulators ended a 10-month moratorium on IPOs in July, had dampened investor demand for new shares, said Tang Wanshan, a Suzhou-based analyst at Soochow Securities.
IPOs on the mainland raised 206 billion yuan last year, a 50 per cent increase from 2008, as companies took advantage of an 80 per cent rise in the benchmark Shanghai Composite Index.
“The relatively subdued first-day trading gains are a reflection of the increasing number and faster pace of listings on ChiNext at a time when concerns are increasing about the government tightening liquidity,” Tang said.
Companies may raise 320 billion yuan in IPOs this year, according to PricewaterhouseCoopers. More than 70 companies are currently awaiting approval for their IPOs from the China Securities Regulatory Commission.
China National Chemical Engineering rose 5.9 per cent in its Shanghai debut on Thursday. China CNR gained 2.3 per cent on its first trading day in Shanghai on December 29.
Regulators imposed a moratorium on IPOs in September of 2008 after the Shanghai Composite Index fell 56 per cent in the first eight months of the year.
China’s central bank on Thursday sold three-month bills at a higher interest rate for the first time in 19 weeks after saying its focus for 2010 was controlling the record expansion in lending and curbing price increases. The Shanghai Composite Index fell the most in two weeks that day.
“The government wants the stock sale to play a bigger role in the funding of companies this year, reducing risks for and pressure on banks to make loans,” said Zhang Ling, at ICBC Credit Suisse Asset Management.
Xinghui Auto Model and seven other companies are also awaiting ChiNext trading debuts.
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