How to prevent excessive hype of innovative enterprises?

Compared with traditional enterprises familiar with the market, innovative enterprises have certain uniqueness in industry, technology, products and models, but the corresponding valuation model has not been established or effectively tested, so it is difficult to evaluate and price.

According to reports, in order to promote the rational pricing of innovative enterprises, the regulatory authorities will give full play to the positive role of professional institutional investors in stabilizing the market and price discovery, and make targeted rules and regulatory arrangements. At the same time, the issuer and its lead underwriter will be required to scientifically design the issuance plan based on the respective characteristics of the enterprise and the principles of prudent pricing, fair placement, market stability and long-term development of the enterprise, and determine the reasonable issuance price on the basis of full inquiry.

Nevertheless, the stock price of innovative pilot enterprises will still fluctuate due to many factors such as company fundamentals, market sentiment, investment hotspots and so on. Investors should carefully study the issuer's prospectus, pay special attention to the issuer's risk disclosure, independent judgment, objective analysis and rational choice, and don't blindly follow suit with a new mentality to avoid unnecessary losses.

For possible excessive speculation, the regulatory authorities will focus on the following aspects: First, the exchange will continue to strengthen the front-line supervision of transactions, strengthen real-time monitoring in intraday trading, pay close attention to changes in market transactions, and timely discover and deal with abnormal situations that affect the local or overall operation of the market. The second is to give full play to the management role of members in customer transactions, and urge members to focus on monitoring customers who frequently participate in speculation. The third is to strengthen investor education, increase risk warning and guide investors to participate in transactions rationally. Fourth, the CSRC and the exchange will resolutely crack down on illegal activities in transactions in accordance with the requirements of comprehensive and strict supervision according to law. Source: People's Daily