From Telegraph:
The first share float on the Chinese stock exchanges since the end of a temporary moratorium on initial public share offerings by state-run firms is being investigated by the Chinese authorities because of suspicions of market-rigging.
CAMC Engineering, a machinery contractor, saw its share price quadruple when it was launched on the Shenzhen stock exchange on Monday last week. It fell 10pc each day thereafter – the maximum allowable – for the rest of the week until Friday.
The shares soared from 7.40 yuan to 31.97 yuan on the first trading day, after rising as high as 50 yuan. By Monday, when the inquiry was launched, they were down to 18.87 yuan.[Full Text]
