Hongkong stock market is facing a serious problem zombie stocks liquidity worrying acbel

Hongkong stock market is facing a serious problem zombie stocks liquidity worrying? The Hongkong stock exchange, according to the British Financial Times reported that a senior banker shares last week to a customer call last year, he helped the clients of the company listed in Hongkong. The client asked on the phone, how can we increase the trading volume of the company’s stock market to enhance the interest in the stock market? The banker’s answer is very simple, although his solution: nothing more than a head to potential investors for intensive promotion. The company is facing the danger of becoming a zombie stock in Hongkong. Zombie index is the volume of very few (compared to the size of the company) of some of the shares listed on the near future, the reason for the small volume is that they call the free flow of stock basically held by the cornerstone investors. The lock up period of half a year, so that these large shareholders cannot initially exchange stocks, these stocks are not traded after the lifting of the ban. The result is the emergence of a number of new but very illiquid stock, not only to attract the interest of investors, it is not conducive to Hongkong and London, for the New York market to par – although Hongkong will be the second consecutive year to become the world’s largest initial public offering (IPO) market. Hongkong’s financial sector has complained for years to cornerstone investors. In fact, two years ago, a government advisory panel called for action, but nothing. But the problem is growing rapidly around cornerstone investors. This year nearly half of the newly issued shares are subscribed by cornerstone investors, a record. The share of these investors in the Chinese postal savings bank (Postal Savings Bank of) next week for $8 billion IPO, will jump to more than 50% of the China. Is expected to China postal savings bank shares issued a three up to four points will be the cornerstone investors, they accept half the lock up period, agreed to open their own name, return can get all the quotas they want. Analysis of Dealogic data shows that mainland companies now provide 71% of the cornerstone funds, two years ago, the ratio was 55%. Many of these investors have been involved in what is known as the "family and friends" deal, a state-owned enterprise listing, and other state-owned enterprises have supported. China’s postal savings is the cornerstone of the largest investor China State Shipbuilding (China Shipbuilding Industry), subscribed for approximately $2 billion in shares. Bankers warn that the massive use of cornerstone investments will drive up prices because they promise to buy at the value range when necessary, making it harder for others to get a better price. "The cornerstone of Chinese companies is nothing but money," said one banker. They don’t know how to study and come up with a price they don’t care about." Hongkong’s Financial Services Advisory Committee warned in 2014 that it was likely to distort the market pricing, when the cornerstone investment in the total amount of IPO financing accounted for less than 30%. But the Hongkong Stock Exchange (HKEx) – for-profit monopolist — stock trading last year said its listing committee (Listing Committee) "(not found))相关的主题文章: