Sept. 17 — Chen Wenhui, former vice chairman of the China Banking and Insurance
Regulatory Commission, said at an investment conference that technology
innovation requires long-duration capital and that equity investment funds are
important providers of that capital. He warned of local overheating in the
primary market and an emerging valuation inversion, where primary-market
valuations exceed those in the secondary market. Chen said a persistent
inversion could transmit back to markets via high issuance prices, sharp
post-listing declines and blocked exits, undermining capital-market health. He
urged stronger linkage between primary and secondary pricing so secondary-market
discovery price more effectively feeds back to issuers and investors, and said
Hong Kong’s connection to international investors can help make equity pricing
more scientific and sustainable.
