The China Securities Regulatory Commission has recently cracked down on fraud, which has been very happy and has brought confidence to the establishment of a fair society. But there is another important aspect, which has not been covered in this rectification.
The main reason why a large number of companies want to go public is that once they are listed, they will be several times dozens of times in a few days or weeks, and the business owners will immediately become rich and then harvest.
In the mature **, the ** of a new share issuance is calculated by the professional team of the ** company according to the PE level of similar listed companies in the market after collecting the economic data of all the issuing companies. Generally speaking, this ** is generally accepted as reasonable, otherwise the buyer is reluctant to subscribe, or the seller (original shareholder) is unwilling to sell. This intended IPO issuance** will make the final up and down adjustments on the day of listing based on the latest market information and supply and demand.
In the United States, for example, IPOs issued from 2005 to 2022 have an average first day of issuance every year except for one year**. And from the perspective of individual IPOs, about one-third of IPOs are on the first day of listing**, and about 50%** on the second day**, so overall, the number of US IPOs rising and falling in the first two days is flat, but the average increase is higher than the decline. In other words, the direction of the floating after the IPO is not determined, so the IPO has not been particularly favored by investors abroad.
And this kind of ** phenomenon in my country is really rare. I think this is the result of the joint efforts of listed companies and sponsors, plus other **, boasting, buying and selling. As a result, the value of the IPO is seriously distorted, resulting in a gradual return in the future, and it is inevitable that it will linger for a long time.
In my opinion, this kind of market manipulation must be rectified, which should stipulate that all ** should not participate in IPO transactions within one month. Although this is contrary to the principle of market fairness, it can be considered as an interim measure and is necessary.