From Reuters via International Herald Tribune :
When stocks in three big Chinese companies sank below their initial public offering prices last week, investors who bought shares in last year’s offers suffered. China’s once-roaring IPO market is another casualty.
After spectacular growth last year, when mainland China eclipsed the United States as the world’s biggest market for initial public offers of equity, sliding stock prices and concern about oversupply threaten to stifle activity this year.
“The bubble is bursting after rampant speculation pushed prices of newly listed shares to ridiculously high levels at the peak of China’s stock bull run late last year,” said Zheng Weigang, head of research at Shanghai Securities. “This will slow equity fund-raising in coming months and deter the overpricing of new offers and new listings.”
