Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Shanghai warns investors against plotting on STAR IPO prices

09/21/2020 | 09:33am EST
FILE PHOTO: An investor stands in front of electronic board showing stock information at brokerage house in Shanghai

China's Shanghai Stock Exchange warned investors on Monday against colluding to suppress the price of initial public offerings on its Nasdaq-style market.

Some investors are suspected of conducting what the stock exchange has described as "negotiated offers" in their subscriptions to shares of new listings, it said in a statement posted on its website.

The exchange also said some lead underwriters -- the banks which organise the IPOs -- were not offering independent research reports.

The Shanghai Stock Exchange will resolutely take regulatory measures to deal with illegal acts and irregularities in the process of IPOs in order to protect the healthy and stable development of the STAR Market, it said in the statement.

The year-old market is set for a major boost later this year when China's Ant Group, a financial technology giant, plans to list on it and in Hong Kong in a dual listing expected to be worth up to $30 billion.

The recent occurrence of super low offering prices represents a "huddling-together" strategy by investors anticipating that returns from new listings will drop as large IPOs suck liquidity out of the market, analysts at China Galaxy Securities said in report.

In a meeting held to discuss the recent phenomenon in the IPO pricing process, the Securities Association of China said that an important step in China's IPO reforms is to establish a regulated and rational pricing mechanism and the Association will have zero tolerance towards irregularities.

(Reporting by Luoyan Liu and Andrew Galbraith; editing by Carmel Crimmins)

© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
CHINA GALAXY SECURITIES CO., LTD. 1.40% 5.06 End-of-day quote.10.24%
NASDAQ COMP. 0.48% 12094.402197 Delayed Quote.34.15%
SHANGHAI A INDEX 1.15% 3572.443 Real-time Quote.10.51%
SHANGHAI STOCK EXCHANGE B SHARES INDEX -0.53% 244.676 Real-time Quote.-4.22%
Latest news "Economy & Forex"
02:57aMINISTRY OF FOREIGN AFFAIRS OF PEOPLE REPUBL : Japanese Prime Minister Yoshihide Suga Meets with Wang Yi
02:51aBNP PARIBAS : Notification by the ECB of the 2020 Supervisory Review and Evaluation Process (SREP)
02:47aDANMARKS NATIONALBANK : becomes owner and administrator of new Danish reference rate
02:46aHungary's PM Orban rules out compromise in EU budget standoff
02:46aKenya's Centum Investment swings to H1 pretax loss on pandemic impact
02:35aSpain's BBVA says it is comfortable with its 49.9% stake in Garanti
02:35aNo reason to worry about Oxford/Astra vaccine, UK minister says
02:34aEU warns decision on UK financial services won't come before January 1
02:33aChina corporate spreads surge on state firm defaults
02:33aNew broom at UK financial watchdog starts sweeping changes
Latest news "Economy & Forex"