Spate of 8 IPOs may prevent rally
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E-mail Shanghai Daily, February 6, 2012
Shanghai's stock market may extend last week's upward trend although sharp rallies are unlikely due to a spate of initial public offerings this week, market watchers said.
From today to Friday, eight IPO subscriptions, which are expected to raise a combined 9 billion yuan (US$1.42 billion), are set to be launched. This week's bumper IPOs compared to six launched in January and fewer than 20 in December 2011.
Qian Qimin, an analyst at Shenyin & Wanguo Securities, said the IPOs may prevent a sharp rally in the market.
In a latest survey major Chinese brokerages predicted the index may hover between 2,250 points and 2,450 points this week, with two thirds of them saying they were positive.
The Shanghai Composite Index jumped to 2,330.41 points - the highest since December 7 - on Friday.
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