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Shenzhen-listed stock increases by 10% each day

195 pointsby igonvalueabout 10 years ago

13 comments

zhoutongabout 10 years ago
It&#x27;s a hugely underpriced IPO in a bubble (Tech stocks average P&#x2F;E is over 100). +&#x2F;- 10% is the price limit in Chinese stock markets.<p>So rather than having a price jump, this stock continues going up with little volume, until the &quot;real market price&quot; is reached.<p>Edit: It&#x27;s oversubscribed by almost 300 times. <a href="http:&#x2F;&#x2F;mobile.reuters.com&#x2F;article&#x2F;idUSL3N0WI22B20150316?irpc=932" rel="nofollow">http:&#x2F;&#x2F;mobile.reuters.com&#x2F;article&#x2F;idUSL3N0WI22B20150316?irpc...</a>
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appliance_guideabout 10 years ago
see this article for well-written explanation: <a href="http:&#x2F;&#x2F;www.bloombergview.com&#x2F;articles&#x2F;2015-05-01&#x2F;risky-debt-and-perfect-stocks" rel="nofollow">http:&#x2F;&#x2F;www.bloombergview.com&#x2F;articles&#x2F;2015-05-01&#x2F;risky-debt-...</a>
ComputerGuruabout 10 years ago
Ummm so how does one in the USA buy a Shenzhen-listed stock? I can&#x27;t exactly buy it from my fidelity.com account now, can I?
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dzhiurgisabout 10 years ago
It&#x27;s odd that no one mentioned that they are makers of successful VR glasses: <a href="http:&#x2F;&#x2F;www.baofengmojing.cn" rel="nofollow">http:&#x2F;&#x2F;www.baofengmojing.cn</a><p>I am amazed how quickly VR is taking of. This must be the 10nth manufacturer using the same concept.
kgcabout 10 years ago
What&#x27;s going on here?
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memossyabout 10 years ago
They got rid of most of the IPO pricing restrictions ages ago, now the primary driver is liquidity and margin lending, with official margined shares making up around 30% of the current free float and the Shenzhen market turning over its free float every 7 days (!). To put the margin in context, for the US market its around 3% of free float and you can margin 50-100%<p>ChiNext is on around 50x earnings now, most stocks above 5x PB. Could go further though, brokers only 2&#x2F;3rds through their margin limit...
PaulHouleabout 10 years ago
Love that Sharpe ratio!
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calebmabout 10 years ago
They make a great radio: <a href="http:&#x2F;&#x2F;www.amazon.com&#x2F;BaoFeng-UV5R-Dual-Band-Two-Way-Radio&#x2F;dp&#x2F;B007H4VT7A" rel="nofollow">http:&#x2F;&#x2F;www.amazon.com&#x2F;BaoFeng-UV5R-Dual-Band-Two-Way-Radio&#x2F;d...</a> (cheap way to get into Ham).
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marincountyabout 10 years ago
NQ mobile--I still can&#x27;t figure out what this stock does, or why the SEC has not delisted them. I think when it all blows, like always-- the big boys will have gotten out, and the little investor will have lost everything.<p>No wonder banks&#x2F;investment houses are afraid of Elisabeth Warren? I feel she know what the future holds?<p>That reminds me I need to get my cd out of .10 percent this week. Yes, I am making .001 percent on my retirement. Homelessness--here I come! I&#x27;ll even mention the wonderful bank that didn&#x27;t inform me of the rate change--lovely Luther Burbank. &quot;The bank that really keeps your info quiet!&quot;
peter303about 10 years ago
China stock market = casino<p>invest only what you are not afraid to lose
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rolyatyasmarabout 10 years ago
Is there any way to buy this on the open exchange?
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haosdentabout 10 years ago
China stocks is crazying in these days
cymeticaabout 10 years ago
Increases by 10% everyday? On the front page of HN? Show&#x27;s over. Now look for the MMs to attract buyers as they short it on the way down for buco $$$.