Selling strategy of new stock investment;
In China, the average return rate of new shares in 1997-2004 was 57.54%, and in 2003-2004 it was 52.93%, which was far lower than the average return rate of 125% on the first day of listing, showing that the new shares were highly speculative. It is expected that the market will still pursue new shares on the first day of listing, and the yield on the first day of listing will be higher than three months and beyond. Therefore, we suggest that investors who are not restricted by the lock-up period, if they do not want to hold new shares for a long time and only seek arbitrage gains from the issuance and listing, should sell them on the day of listing or a few days after listing.