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The anything-goes mentality of last year has been replaced by sharp-nosed investors looking for quality.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