Why are new shares prone to sky-high prices? What will be the difference after the full registration system?

Many retail friends like to speculate in new shares, especially when new shares are opened, and even hang up the daily limit board to expect their orders to be closed. However, this practice is risky, because new shares fluctuate greatly, especially now the fluctuation range of science and technology innovation board and growth enterprise market is relaxed to 20%. In the event of a crash, assets may shrink by half in one day, and people with poor psychological endurance simply cannot afford such losses. So why are new shares prone to this extreme market? Let's analyze the relevant reasons first.

High issue premium

Many new shares may have a high P/E ratio, especially the science and technology innovation board, with an average P/E ratio of nearly 70 times. This premium issuance level seriously overdraws the rising potential of subsequent stocks, leaving no room for investors in the secondary market. Let's just say the food is really ugly. Maybe you will say that companies listed on the science and technology innovation board have great potential, good growth and reasonable price-earnings ratio. We believe that we can pay an appropriate premium, but speculation that seriously deviates from the law of value will eventually be beaten back to its original shape. The general performance of science and technology innovation board stock market a month later can prove this point.

main control panel

In the process of IPO, a large number of shares are obtained by institutional investors through primary market placement, and a large proportion of shares are actually locked at the beginning of IPO. In this way, the number of tradable shares that can be traded when new shares are listed is very small and scattered. At this time, institutional investors will generally lock positions and then slowly collect chips from unstable retail investors. Therefore, it is easy to have a daily limit in the first few days of IPO.

When institutions have enough chips in their hands, they are likely to choose to use market adjustment to break the daily limit. With the panic selling of retail investors, it is easy to kill new shares directly, even on the daily limit.

Theme hype

There are also some new shares that may meet the hot topics of current speculation, such as photovoltaics and new energy vehicles. This feature can easily be used by hot money to lure retail investors into the market. In the early stage, they will think of various ways to get retail investors to hand over their chips. When they speculate on the theme in the later stage, they will use their chips to control the market, quickly raise the stock price and then sell it decisively. The retail investors who chase high speculation are set at a high level when they enter the market. The game of hot money is very bad, and it is often shipped violently on the daily limit. If the disk is not good, new shares may fall directly.

Excessive speculation by retail investors

Retail transactions are often irrational, knowing that the second wave of new shares in the game is very risky, and sometimes it will be tempted by the main force. On the other hand, it is the excessive speculation of a large number of retail investors that encourages the main force to cut leeks with new shares. It is a stock with excellent fundamentals, and sometimes it can really get out of a better market outlook, such as Xiangchun shares before. However, this situation is a minority after all, and retail investors should treat it rationally.

in consideration of

After the full registration system, a large number of new shares are listed, which is no longer scarce. And the first five trading days have not gone up or down.

Then the main force that wants to speculate with new shares should be less and less. As long as investors learn to value stocks reasonably, there will be no more cases of blindly speculating in new shares and being harvested by sky-high buildings.