中国新股，平均第一天，第五天，第十天，分别涨44%，115%，177%。一年涨417%

2014年以来，中国新上市200多新股，平均第一天，第五天，第十天，分别涨44%，115%，177%。一年涨417%。

Bloomburg

By Shuli Ren

This blog can’t stress enough the importance of watching China’s IPO schedules. A busy IPO week can sap tons of liquidity out of China’s stock market – and we will have another one next week.

Since 2014, a total of 225 companies have gone public in China’s A-shares markets, data provided by Morgan Stanley show.

A staggering amount of wealth has been created. These 225 companies have raised 754 billion yuan in their IPOs. Now, they are worth 3.1 trillion yuan, 413% increase, or over $500 billion in U.S. dollar.

Subscribing to new IPOs is a sure way to make a quick profit. Of the 225 IPOs, except for the two IPOs in energy (29% return – not shabby either!), the 223 IPOs returned somewhere between 43-44% on the first day. What this means is that these new stocks would open limit up (20%) and rise by an additional 20% limit up during the day. “To put it mildly, this suggests a market that has not been discriminating in relation to pricing, at least early on,” wrote strategist Jonathan Garner and team.

This also explains why a busy IPO schedule can soak liquidity out of the stock markets and why Chinese investors wants to open so many broker accounts. “Investors have come to see IPOs as a sure-fire way of making high returns over a short period of time.” IPOs are easily 200-300 times oversubscribed and the more stock accounts you have, the higher your chances of getting IPO shares!

But the pop does not stop after the first day. The average returns for holding onto the new stock for 5 days is 115%; for 10 days, 177%. These IPO stocks have on average returned 417.5%.