Corporate & Securities partner Billy Au is quoted in Bloomberg on the surge in margin loans in Hong Kong and the Hong Kong Stock Exchange’s initiative to seek market feedback on allocating a maximum of 20% of hot IPOs to retail investors.
“If the stock exchange’s proposals were to materialise, the competition for shares among mom-and-pop investors would be even fiercer for hot deals,” according to Billy.
“If everyone dumps the shares on the first day, then the share price can’t be sustained, and at the end of the day the retail investors will suffer,” he adds.
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