Mainland Chinese investors are jumping at the chance to buy shares in newly-listed companies, confirming huge demand for initial public offerings in a market otherwise devoid of enthusiasm.
Lianming Machinery, a Pudong-based supplier of industrial products, listed on Monday in the Shanghai market's first IPO in four months. Shares immediately surged 44 per cent to the upper limit before being suspended.
Three companies that listed on the Shenzhen exchange last Thursday - Feitian Technologies, Shandong Longda Meat Foodstuffs and Wuxi Xuelang Environmental - all rose 44 per cent on their debut, then hit the 10 per cent limit on both Friday and Monday.
The mainland's IPO market reopened in January after being frozen by regulators for more than a year.
Back in 2012, mainland China was the second-largest IPO market, but regulators became concerned that enthusiasm for new listings was sapping demand for the rest of the market. The China Securities Regulatory Commission responded by blocking new listings and increasing investor protections.
Strong demand for IPOs also led to sharp falls in stock prices the days or weeks after companies list, which had regulators worried in a retail-dominated market.
The Shanghai market is down 3.5 per cent year to date. The Shenzhen market is up 2.7 per cent.
上周四，在深交所上市的3家公司——飞天诚信科技(Feitian Technologies)、山东龙大肉食(Shandong Longda Meat Foodstuffs)以及无锡雪浪环境(Wuxi Xuelang Environmental)，在上市首日股价都飙升44%，接着在上周五和本周一均告涨停。