H shares lose appeal

PUBLISHED : Sunday, 10 July, 1994, 12:00am
UPDATED : Sunday, 10 July, 1994, 12:00am

IF they hadn't seen it before, the writing is now well and truly on the wall - H-shares have lost their appeal.

The market seems to have got wise to the fact that firms are being floated at premium prices, a practice which may have been acceptable in the great bull run of 1993 but seems doomed to fail this year.

In some ways, the Luoyang Glass flotation flop is a watershed for H shares. The aura of invincibility is gone. The cracks have been exposed.

The anything-goes mentality of last year has been replaced by sharp-nosed investors looking for quality.

There is still plenty of demand for China stocks but from now on the pricing has to be attractive to say the least.