wow perfect ending for DJIA~!

by the way, any Selangorian here? this monday is Nuzul Al-Quran aka public holiday, we can enjoy the KLSE monkey show relaxingly at our couch

i wan my martini~!

Room for more upside after the US holidays then.....

Since first day of listing, Msport has been dumped.
http://biz.thestar.com.my/news/story.asp?f...98&sec=business

IPO become a dump site for cash?

Somehow those applied for the IPO become like a fool now. No offence.

People might lose faith for IPO next time especially China related company afterwards.

All red chips in KLSE are making loss for investors from Huaan, Xinquan, now MSport at significant amount, even though market has rebounded/recovered a lot.

Previously people tak nak for CWs, now red chip time?

The main reason of dump because China market drop like hell. Many people die la.

lets welcome Xi De Lang

another new IPO - Halex Holdings Bhd, listing date on 16-09-09 (tentatively).

anyone remember a stock tat started @ below 2.50, shot up to 3.30, sharp drop to 2.40-2.50, fluctuate between from 2.5 to 2.8 about 3times before shooting up from 2.50 to end about 3.10-3.20 recently? It's a discussion question and i'm still unable to figure the answer:)

wow quiz of the day

Funny when the paper states this "It should also be noted that the recent sharp declines in the mainland China bourses of Shanghai and Shenzhen have brought down valuations of Chinese stocks."

Look, it should be noted that the sharp declines in Mainland China has little effect on those Chinese companies listed @ NYSE.

Is this just a local perception issue and not really necessary the China related companies?

What about the perception of the underwriter? Who actually pump up these two companies before they were listed?

Najib says China is going to led the recovery.. so much for the confidence for these Chinese companies in Malaysia.

It doesn't make sense to me to use SSE or China bourses as excuse. SSE has been up almost 90% since this year alone, then blame the 20% drop as 'sharp decline'? Until now, investors there still gain 60-70% YTD by holding SSE shares.

I would say investors lose faith on overseas listed China company especially what had happened on SG.

I still not able to find a solid reason, why China company want to list in Malaysia, instead of China main market, HK, or SG until now, little people come out some explanation.
We need this strong reason to have confidence on those red chips.

This issue is compounded major stake holders dumping since IPO.

SHI is trading at 20 to 25 time PE on forward earnings basis. Volume in SHI is now 7 times that of even HK. But SHI is dominated by giant state-owned or -controlled entreprises. Smaller outfits are aplenty on SHI and SZI but Chinese Companies in Mainland are notorious for accounting and financial fraud. This has to do with the regulatory structure there, the all-powerful tax office, the norm of bribes, the many easy ways to sihpon out money from companies through related parties. Red chips are good if they are really RED like PetroChina, Sinopec and other companies that start their names with ZHONG (china in chinese). Forget about the rest.

ya, i also would like to know why, china company is interested to list in malaysia instead of sg or hk.

More suckers?

Perhaps they couldn't be listed elsewhere or they were simply "rejects".

Anyway, isn't this the goal of the Malaysia govt? They want to attract more Chinese companies to be listed in Bursa (since they are unable to attract the likes of western MNCs like Intel, Google, etc).

There must be a lot of incentives for them to come here and since there are heavy govt involvement here. The underwriters also profit big time.

Could be true. Most of these Chinese companies are probably virtually unknown to local investors.. any signs of a "probable" negative sentiments.. they are the first who will bail upon IPO, leaving those to bought in during the rush end up holding the bag. Those companies are probably smiling, "Thanks for all the cash!"

If that's the case, it'll just leave a sour aftertaste in the investors mouth.
Sooner or later they'll start ignoring future IPO's and then the underwiters will have to 'eat' the shares themselves.
There are only so many times you can profit from suckers right?

My office in Selangor but I got to work on Monday.

One reason I can offer is that in China,there's only Shanghai and Shenzen stock exchanges.Unlike here,the number of companies in operation in China is enormous as well as those applying to list.

For a company the size of XinQuan ,Msports and XiDeLang ,which is considered small cap stocks, to get their listing approved,it may take three to five years.As a quick solution to this,these companies have to go for overseas listing and HK is out for the same reason,HK prefers huge listings like China Construction Bank.

Singaporean has little appetite for red chips now after the recent corporate govenance and accounting issues.

At the same time,Malaysia is desperate for red chips to be listed here,with the blessing of the govment,a few Investment banks went courting and these companies were convinced.

This is the reason I learned from our people from the advisory side that courted Msports and XiDeLang.I do not vouch for the accuracy as well as investibility of these stocks.

makes perfect sense.
although, i must admit the government clearly isn't understanding what the market needs right now though.

No different from Wall Street then.

---

Added on September 6, 2009, 1:04 amBut the cash is peanuts...really peanuts. In the scheme of things, these 'IPO's' are merely a rounding error.
To put it in perspective, the entire average daily turnover of the KLSE (all 700+ counters) over the last few weeks is less than many single stocks daily 'churn' on the FTSE.

it's pathetic - truly pathetic.

And it's getting worse

This post has been edited by David_Brent: Sep 6 2009, 01:04 AM

Definately, it shows that our economist outdated & old skool. Running dry of new ideas.

They just need the cash from the IPO.

means we become sor zai already?

means we must avoid red chips by all means