Looking at the phenomenon of new stock listings in the A-share market, it is indeed worth pondering. The tenfold increase on the first day of listing has become the norm. What does this really reflect?

Comparing with other mature markets worldwide makes it clear. Hong Kong stocks are mostly either breaking the issue price or trading close to the offering price. What does this indicate? It shows that their pricing system is reasonable, and market liquidity allocation is well balanced. The US stock market follows a similar logic, with post-listing performance generally aligning with fundamentals.

In contrast, in the A-share market, tenfold gains are commonplace. This raises a problem—either the issuance pricing is severely undervalued, or there is a misallocation of market liquidity, with supply and demand for new stocks being seriously out of balance. Do you call this market prosperity? No, this looks more like a distorted premium phenomenon.

Where is the problem? To put it simply, the institutional design still needs further improvement. The new stock issuance pricing mechanism, allocation process, and even liquidity management before listing all need to be closer to international mature market standards. Only then can new stock performance return to rationality.