Two weeks ago, we brought you the story of Beijing Baoefung Technology which in many ways exemplifies everything that’s wrong (or right, depending on whether you, like Japan’s Economics Minister Akira Amari, have come to believe that bubbles are good) with today’s capital markets. The online video company’s shares posted a remarkable post-IPO run amid China’s red-hot equity mania, but as FT reports, something went terribly wrong on Thursday: the stock fell.
This column’s favorite stock for the past month has been Beijing Baofeng Technology, which offers online videos in China. Baofeng means “storm”, and it has been a near-perfect performer: its shares traded limit-up every day from its March IPO in Shenzhen apart from one, and opened up the maximum 10 per cent on Thursday, too.
It looks like the storm has now broken. Its shares ended the day down for the first time, falling 4.4 per cent after news of a copyright dispute over content.
There’s no need to panic though because “the stock [is] up 3,285 per cent from the offer price.”
In other words:
