What does it mean to break new shares?

If the new shares are broken on the day of listing, it means that there are more orders sold that day, and the strength of the empty side is greater than that of many parties. Under normal circumstances, the valuation of sub-new shares is too high, which is inconsistent with its value, and the bubble is large, which leads to the stable investors and main players selling a lot of chips after the stock is listed, so that its share price falls below the issue price and returns to its value. When some cyclical stocks are listed, their industry cycle is at its peak, and the market expects that the future performance growth will decline, which may lead to the stock price breaking.

Extended data

From the perspective of China alone, the China stock market is a gathering place for retail investors, and the break is largely inseparable from the irrational decline of the market, which has intensified the panic killing of investors. Therefore, for this kind of stock, it depends on whether there is an obvious turning point in its fundamentals and whether the market still supports its stock price to get out of the trough, rather than operating too blindly.

Furthermore, we can't judge whether a broken stock can be bought by just one index, and there are reasons for buying and not buying. People who want to buy think that they can sell when they fall to this position. Those who don't want to buy think that there must be an unknown reason for falling to this position. Therefore, before buying stocks, it is not too late to make a decision by understanding and comparing all aspects of this company.

Others say that it is certainly true that stocks with good performance break, but if you think about the GEM, it will not be so miserable if you follow this theory.