Securities Times: can the first day of new shares rise to a new low and force the valuation down

category:Finance
 Securities Times: can the first day of new shares rise to a new low and force the valuation down


Hong Kong market has always been considered mature by mainland investors for reference. There are also institutional and individual investors participating in the innovation of Hong Kong stock market. The capital of subscription of China Mobile reaches 71.6 billion Hong Kong dollars, which is 544 times of the local offering plan, making China Mobile the company with the most frozen subscription capital in Hong Kong IPO this year. Zhongshouyou is also popular with many organizations, including fasthand technology, BiliBili (station B), Weibo, etc. However, with HK $71.6 billion, a 2% increase, the result of the first day of listing is amazing how hard it is to make money.

A shares, like Hong Kong shares, are priced by institutions, but Hong Kong shares can keep the price down. Take China Mobile as an example. After listing, its market value is 6.5 billion Hong Kong dollars. In the first half of the year, its net profit is 250 million yuan, and its dynamic P / E ratio is just over 10 times. If such a company appears on the A-share small and medium-sized board or growth enterprise board, it should have a price earnings ratio of 20 times and a valuation of 10 billion yuan; if it doubles after listing, it will have 20 billion yuan. Obviously, A-share listing will bring benefits to the newcomers, and the winners will make profits of tens of thousands of yuan by using the price difference between the primary and secondary markets. This will attract A-share investors to continue to participate in it.

So, to eliminate the overvalued value of new issue, we need to reduce the price difference between the secondary market and the primary market. Now the decline in the first days gains is a very important signal. If the time is long enough and the increase is low enough, it will inevitably be fed back to the issuance of new shares. In fact, the adjustment of the market starts from the whole sector, and has been adjusted for a long time. The rise and fall of newly issued new shares is just a big concern. It is very necessary to adjust the valuation of new share issuance. A healthy capital market should leave profit space for each link. If a company is going to face valuation kill after listing, it will certainly hit market sentiment. There is still a little space between the primary and secondary markets, otherwise it will not be able to activate the popularity. If there is no popularity in the market, it is not conducive to market development. Source: responsible editor of Securities Times: Yang bin_nf4368

So, to eliminate the overvalued value of new issue, we need to reduce the price difference between the secondary market and the primary market. Now the decline in the first days gains is a very important signal. If the time is long enough and the increase is low enough, it will inevitably be fed back to the issuance of new shares. In fact, the adjustment of the market starts from the whole sector, and has been adjusted for a long time. The rise and fall of newly issued new shares is just a big concern.

It is very necessary to adjust the valuation of new share issuance. A healthy capital market should leave profit space for each link. If a company is going to face valuation kill after listing, it will certainly hit market sentiment. There is still a little space between the primary and secondary markets, otherwise it will not be able to activate the popularity. If there is no popularity in the market, it is not conducive to market development.