Liquidity woes loom over A shares

As much as 3.2 trillion yuan may get locked up due to 10 IPOs this week

Ten companies will offer new shares through initial public offerings this week, potentially raising 4.29 billion yuan ($670 million), analysts said.

But what's worrying regular punters is the fact that the current IPO rules require prospective investors to make full payment in advance for share subscription. This could mean the 10 IPOs could lock up as much as an estimated 3.19 trillion yuan before the actual share allocations, analysts said.