However, at the same time that the Hong Kong Stock Exchange frequently knocked on, the large-breaking of new shares was also quite eye-catching. According to the statistics of Wind Data on October 10, as of the date, the Hong Kong stock market had a total of 161 new shares listed this year, of which 125 broke, with a break rate of 77.64%, a further increase from the break rate of 70.3% in the first half. At present, there are as many as 32 new stocks that have fallen more than 50% from the issue price, and 60 new stocks that have fallen between 20% and 50%.
In addition, it is worth noting that the breaking rate of the first day of IPO listing has also increased significantly. According to Datang data, from July 1 to October 10, a total of 60 new shares were listed. So far, 17 breaks have been broken, with a break rate of 71.67%. 24 of them were broken on the first day of listing, and the first day break rate was 40%. Compared with the first half of the year, 29.6% of the first day break rate has increased significantly; and 60 of the 60 new stocks fell below the opening price on the first day of the session, including Xiaomi Group, Gloria Pharmaceuticals, Hualing Pharmaceutical, and US Mission Review. Many star companies, such as Haidilao and Huaxing Capital, have not escaped the bad luck that broke in the market.
Market analysts said that the rise and spread of new stock break rates is not accidental. First, the market at the top of the bull market just fits the high valuation. At this time, listed companies will be benchmarked against the industry benchmarks to obtain higher valuations. However, the company's profitability is not enough to support the high valuation, breaking the market rules. Second, new shares are not supported by sufficient funds. Hong Kong stock IPO retail investors participate in the subscription of new shares, generally adopting financing methods. With the new lottery draw, there will be a game of oversubscription rate and financing ratio. The normal excess rate will be much higher than the financing ratio. However, when the market funds are poor, the oversubscription rate may be lower than the financing ratio, and the broker will ask the customer to replenish the margin, otherwise it will force the liquidation. A large-scale flattening at the opening of the market, the stock price break is a high probability event. Third, as investment sentiment has fallen sharply, incremental funds have become smaller or even stocks have flowed out. The initial speculation of new stocks may be slightly maintained. At the moment, it is difficult to break the bad luck on the day of the IPO.