---
title: "The profitability effect of new stocks and market positioning issues"
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/21719358.md"
description: "Since May, a total of 9 new stocks have been listed in the Hong Kong market, among which 3 are still below their IPO price, one is barely breaking even (if factoring in IPO subscription fees, margin financing, and transaction costs, it might actually be at a loss), and 5 stocks have gained between 10-90%. Considering the liquidity of the Hong Kong market and its different lottery-winning odds compared to A-shares, this level of return is actually quite impressive. Looking back at March and April, March was the period when the A-share market rebounded from its lows, with active trading and strong profit-making effects. Currently, A-shares are still at relatively low levels, and in early April, the market broke through the 3050-point level to surpass the annual line resistance..."
datetime: "2024-06-10T02:47:23.000Z"
locales:
  - [en](https://longbridge.com/en/topics/21719358.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/21719358.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/21719358.md)
author: "[asoyissalty](https://longbridge.com/en/profiles/12785256.md)"
---

# The profitability effect of new stocks and market positioning issues

Since May, there have been 9 newly listed stocks in the Hong Kong market, among which 3 are still trading below their IPO price, one is barely breaking even (if you factor in the costs of IPO subscription, margin financing, and transaction fees, it might even be at a loss), and 5 stocks have gained between 10-90%. Considering the liquidity of the Hong Kong market and the difference in subscription rates compared to the A-share market, this level of return is actually quite impressive.

Looking back at March and April, March was the period when the A-share market rebounded after hitting a new low. Market trading was often active, and the wealth effect was good.

Currently, the A-share market is still at a relatively low level. In early April, the market chose to break through the 3050-point level and stand above the annual line resistance.

Coincidentally, the Hang Seng Index also started a wave of sustained foreign capital inflows around that time. The resonance between the two markets drove a relatively strong market phase (somewhat like a combo move).  
For the upcoming June and July, the market is expected to remain volatile most of the time, with limited downside potential. If a noticeably favorable market trend emerges in August or September, it would still be necessary to dig a pit beforehand. The pit-digging phase can be measured by the performance of new IPOs, such as the three new IPOs in April all falling below their issue price—this kind of data signals a market sentiment low point.  
In summary, the market may not show significant improvement in June and July, but the mid-year reporting season in August and September could bring some hope for a rebound. Before the rebound, the market often digs a pit first, and the pit-digging phase can be analyzed using data on new IPO performance.

## Comments (1)

- **asoyissalty · 2024-06-10T02:48:44.000Z**: Teachers, welcome to exchange views and opinions. Stones from other hills may serve to polish the jade of this one.