Deals
The 300% Instant Gains on China IPOs Are Suddenly Vanishing
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For months, it’s been a no-brainer for Chinese investors: buy shares of newly-listed companies, sit back and watch your money grow.
A limit-up gain of 44 percent on opening day was all but guaranteed, thanks to regulatory pressure on companies to keep offering prices low, and it didn’t stop there. Half of the initial public offerings this year through mid-May jumped more than 300 percent in their first month.