China’s IPO Feeding Frenzy Leaves Sour Taste
From the Financial Times:
When PetroChina listed its shares in Shanghai last November, the headline around the world was that PetroChina had a market capitalisation of more than $1,000bn – making it the planet’s most valuable company – after the shares rose 163 per cent on the first day.
Within China, however, there has been much more attention given to what happened afterwards. The shares are now nearly 50 per cent off their high, inflicting large losses on all those small investors who, overwhelmed by the enthusiasm of the moment, bought on the first day of trading.
PetroChina’s dismal post-IPO performance has prompted a flurry of online anger in chatrooms and blogs that investors read.