Investing in Chinese initial public offerings was once hailed as the safest of safe bets, with guaranteed huge returns to investors. The rationale was that the stock of a newly listed company would almost certainly rise well above its offer price, a pattern that had held true in most cases for many years.
Caixin
Why newly listed Chinese stocks fall below their IPO prices
Investors get lesson in caution as buying new shares no longer one-way bet
This year, as of April 20, 62 out of 107 companies that went public on the Chinese mainland saw their share prices drop below their offer price. © Reuters
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