Shanghai warns investors against plotting on STAR IPO prices

Stock information is displayed on an electronic board at a securities brokerage in Shanghai, Chin. Photographer: Qilai Shen/Bloomberg

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.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.