IPO returns fall
RETURN on investment for private equity and venture capital firms investing in initial public offerings in China is becoming smaller after China tightened supervision of its capital market under the helm of new industry regulator Guo Shuqing, a research report suggests.
The average return on investment in companies which floated IPOs in domestic markets last year was 7.78 times, down from 9.27 in 2010, Zero2IPO said in a report yesterday.
Zhang Qi, a Zero2IPO analyst, said that following the reforms in new share issuance, investment institutions have been making less profit from cashing in on IPOs, especially after Guo took over at the China Securities and Regulatory Commission.
The average return on investment in companies which floated IPOs in domestic markets last year was 7.78 times, down from 9.27 in 2010, Zero2IPO said in a report yesterday.
Zhang Qi, a Zero2IPO analyst, said that following the reforms in new share issuance, investment institutions have been making less profit from cashing in on IPOs, especially after Guo took over at the China Securities and Regulatory Commission.
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