They got rid of most of the IPO pricing restrictions ages ago, now the primary driver is liquidity and margin lending, with official margined shares making up around 30% of the current free float and the Shenzhen market turning over its free float every 7 days (!). To put the margin in context, for the US market its around 3% of free float and you can margin 50-100%
ChiNext is on around 50x earnings now, most stocks above 5x PB. Could go further though, brokers only 2/3rds through their margin limit...
ChiNext is on around 50x earnings now, most stocks above 5x PB. Could go further though, brokers only 2/3rds through their margin limit...