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SCMP Reporter

Shares of Beijing Oriental Yuhong Waterproof Tech fell below their initial public offering price yesterday on their third trading day,  in a sign that the mainland's  market for new listings is   on the brink of collapse amid the bearish sentiment.
Oriental Yuhong closed at 17 yuan (HK$19.37),   1.9 per cent below the offering price of 17.33 yuan.
It is the fastest stock to slip below its offering price on the Shenzhen Stock Exchange's SME board since it was established in 2004.
'The market sentiment is just too bad,' said Guotai Junan Securities analyst Mo Yanjun. 'Oriental Yuhong's performance suggests that it will be  difficult to launch IPOs now.'
Mainland share offerings are usually priced artificially low to aid  share sales, and the stocks  normally surge on the first trading day.
Oriental Yuhong rose 2.66 yuan or 15.35 per cent on Wednesday when  it started trading.
The first-day trading premium  was the smallest recorded in the past three months as analysts expected a  decline amid profit taking.
On Thursday, Oriental Yuhong dropped 10 per cent, hitting the daily trading limit to end at 17.99 yuan.
Oriental Yuhong's tumble is yet another  blow to  stock investors already reeling from  a 60 per cent market slump.
The bear run  has prompted the China Securities Regulatory Commission to slow down  listing approvals this year amid worries that new shares would drain liquidity from  the sluggish market.
So far, only 73 companies have launched  initial offerings on the mainland.
Most of the companies offered their shares on the SME board, which is meant  for small enterprises whose offering volumes are less than 100 million shares.
In June, 12 stocks made their trading debuts on the SME board and eight of them have since fallen below their listing prices.
The CSRC had planned to launch a Nasdaq-style market in Shenzhen in June to help small firms raise funds.
The regulator then decided to put the plan  on hold  because of worries of a possible  sharp fall on the main board  before the Beijing Olympic Games as funds would flock to the small-cap firms to chase short-term gains.
Analysts said the technology-heavy  board might not be set up until next year because of  the weak sentiment.



Oriental Yuhong drops below IPO price amid weak sentiment