Latest batch of China IPOs could lock up RMB3tn next week

A total of 20 firms scheduled to make initial public offerings next week could reduce liquidity by locking up around RMB3 trillion (US$483.19 billion) of subscription capital next week, Reuters reported, citing economic analysts. Although the companies are only seeking to raise a total of RMB200 million, the lottery-style subscription process for shares in China attracts vastly more money than is needed as firms attempt to secure shares before prices potentially skyrocket after launch. The latest batch of IPOs is the second to be approved in less than a month, suggesting regulators are hoping to cool down China’s white-hot markets.