Is China First Heavy setting its $1.67 billion Shanghai IPO price below the top of its range a sign of growing realism as markets weaken and regulators demand more rational pricing?
Reuters’ Samuel Shen and Edmund Klamann report mainland IPOs are confronting a market that is sagging under the weight of heavy share supplies, fed by authorities who have approved a steady stream of new share issues to keep the market cool and avert asset price bubbles.
The FT has a story on Bejing possibly putting a clamp on “irresponsible” IPO pricing. See the FT’s blog on the issue as well.
More from Reuters:
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First Shanghai IPO of 2010 is an encouraging flop (Reuters Breakingviews)
XD Electric share debut China’s worst in 5-½ years (Reuters)
Stocks sizzle as China debuts start-ups market (Reuters) from Oct 30
China regulator urges restraint on high IPO prices (Retuers) from Jan 30
