The gory details of China's stock market scandals are beloved by the financial media. Who could resist a story in which a company, Kangmei Pharmaceutical, blames an "accounting error" for overstating its cash holdings by as much as $4 billion? And who could stifle a snigger when another Chinese company, China Animal Healthcare, claimed that five years of accounts were lost when a truck carrying them was stolen?
Excitement is fading in China’s Star market as traders await the next batch of initial public offerings. Prices of many of the 25 newly listed companies fell after their average 140% first-day surge, while daily turnover was less than half the first day’s level. Though traders viewed the launch positively, the question is whether interest in existing shares will be maintained as more firms come to the table.
Wanda Sports Group Co. fell 36% in its trading debut after its U.S. initial public offering raised only $190 million, less than half its earlier goal for the listing. The American depositary shares priced in the IPO at $8 and then opened at $6. The shares ended the day worth only $5.16 a share, valuing the Beijing-based company at $705 million after the second-worst debut on a U.S. exchange this year.