The recent newly listed Beijing Stock Exchange (BSE) IPOs are truly undervalued.

PortfolioAlert · 2026-04-04T03:11:48+00:00

In the past four newly listed stocks on the Beijing Stock Exchange, the first-day gains were not high, and they all experienced significant declines after listing. After a few days of decline, the valuations are really low.Longyuan Co., Ltd. has a P/E ratio of 16 times, with a current price of 33.67 yuan, up 36% from the issue price. Pu'ang Medical has a P/E ratio of 21 times, with a current price of 36 yuan, up 96% from the issue price. Yuelong Technology has a P/E ratio of 22 times, with a current price of 24.28 yuan, up 72% from the issue price. Xin Hengtai has a P/E ratio of 23 times, with a current price of 15.9 yuan, up 69% from the issue price.The P/E ratio of the CSI 50 is 51 times, and these new stocks are valued at less than half of the CSI 50. Since new stocks on the Beijing Stock Exchange are issued with a P/E ratio below 15 times, I initially thought that even if the CSI 50 drops to 600 points, the new stocks wouldn't break the IPO price. But now it seems that if it falls below 1,000 points, they will break the IPO price.

PortfolioAlert

2026-04-04 03:11:48

Recently, four newly listed stocks on the Beijing Stock Exchange have had modest opening-day gains. After listing, they all saw sharp declines. After falling for several days, the valuations are really low.

Longyuan Shares has a P/E ratio of 16; its current price is 33.67 yuan, up 36% from its issue price.
Puang Medical has a P/E ratio of 21; its current price is 36 yuan, up 96% from its issue price.
Yuelong Technology has a P/E ratio of 22; its current price is 24.28 yuan, up 72% from its issue price.
Xin Hengtai has a P/E ratio of 23; its current price is 15.9 yuan, up 69% from its issue price.

The P/E ratio of the BZSE 50 is 51. The valuations of these new stocks are all less than half of the BZSE 50. Because new listings on the Beijing Stock Exchange are issued at P/E ratios below 15, I thought that even if the BZSE 50 fell to 600 points, the new stocks wouldn’t go below the issue price. But now it looks like once it drops below 1000 points, they will go below the issue price.

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