Commentary Topic from greenfaucet
You may have noticed that IPOs in China have started up again after a nine month hiatus. The listing of IPOs has both positive and negative implications. On the positive side of the ledger successful IPOs indicate that there is healthy demand for equities. If demand is healthy then there is a better chance for higher prices. The negative to this is that to the extent IPOs are a supply that is created to meet demand, at some point the ratio of supply versus demand will tilt in favor of supply. This was part of the equation that caused the tech bubble and subsequent popping.
