Why the rush of placement and right issue?

The sentiment has improved dramatically. Many people buy into the green shoot theory or just not wanting to miss the boat. But is recovery clearly in sight? I viewed the worst is over, the credit market has unfreeze, but the recovery is not clearly in sight. US consumer spending still weak and unemployment is high.

As more people has higher risk appetite, this is a perfect time for company to raise money by placement or right issue. Why? Simply because, if we are going to trend down in next 6 to 12 months, at least the company won't run out of money. Some even plan for expansion, using the current low asset price to buy growth in the future.

The market has peaked, any bad news which dash the hope of green shoot might cause the institution to start selling and lock in the profit.

Xingquan International Sports to list on Bursa Malaysia

Xingquan is another China sports shoe maker to seek a share listing, not in China, Hong Kong or Singapore, but in Malaysia.

China has many domestic shoe maker, which operate at different city tier. The competition is intense, even in the second or third tier city. To complete efficiently, many have gone the road of China Hongxing, that is to raise capital from the stock market.

The big shoe maker like Anta would go Hong Kong to list. The medium to smaller one came to Singapore. Xingquan took a different road to list in Malaysia, maybe to get more attention. Because it is among the very few China companies listed on the bourse.