IPO lure draws elusive investors back to bourses

SHANGHAI: Although 81-year-old Wan Mingshun lost a bundle in the rush for new shares at the tail end of the 2007 boom, he is confident that his luck will change the second time round.

Like hundreds of thousands of investors, young and old, Wan is looking forward to the imminent resumption of initial public offerings, or IPOs, that can happen anytime.

Chinese investors have a love-hate relationship with IPOs. When the market was on the boil, IPOs are widely seen as a sure-win bet that promises multiple returns. Indeed, they did before the 2008 stock market crash. When the market began to fall in late 2007, IPOs were seen as the major reason for draining market liquidity.