Market Veteran: Changxin Technology IPO Comparison With 2007 Is Not Realistic

Changxin Technology has launched its share issuance, with total fundraising of about 57.9 billion yuan. According to Jin10, market concerns that the large IPO could create a funding drain, even likening it to PetroChina's 2007 listing, were dismissed by a market veteran as an oversimplification.

The veteran said the current market environment is very different from 2007, noting that policy is moderately loose now, while that period coincided with a rate-hike cycle and the global financial crisis. A-share total market capitalization has risen from 32 trillion yuan to 120 trillion yuan, and average daily turnover has increased from 190 billion yuan to more than 2 trillion yuan. The person added that A-shares use market-value allotment, so investors do not need to freeze subscription funds in advance, and that strategic placements and offline institutional allocations account for a high share of incremental funds rather than relying entirely on existing capital. The veteran also said the impact of large IPOs on indexes is limited, adding that the S&P 500 had a 71.4% success rate 20 days after the listing of the 15 largest U.S. IPOs. Experts said secondary-market performance is driven by multiple factors, and a single IPO has never been the fundamental cause of a correction.