SHANGHAI : Chinese regulators have urged underwriters to price initial public offerings more reasonably after a third of more than 100 new listings so far this year fell on their trading debut.
Chinese IPOs are underwritten mostly by Chinese banks, as well as some joint ventures with foreign banks. Among the worst performers this year, chipmaker Vanchip Tianjin Technology Co plunged 36 per cent on its first day of trading, while electronics maker Rigol Technologies tumbled 35 per cent. Fang Xinghai, vice chairman of China's securities watchdog, said at the Boao Asia Forum last week that Chinese underwriters need to improve their IPO pricing skills, and introducing foreign competition would help.
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