More proof of the eventual disaster that is China's stock market. From The Standard, 1.142 million new A-share accounts opened in just 5 days. The Shanghai index has tripled in the past 18 months. And Hong Kong isn't immune, as the IPO games continue:

Mainland property developer Country Garden Holdings, which will make its trading debut tomorrow, priced its shares at HK$5.38 - the top end of the indicative price range - after it tied up HK$329 billion in its retail tranche during its public offering, the second largest lock-up in history...China Moly locked up HK$296 billion, the third-highest total after Country Garden.

THe game is simple: people apply for far more shares than they actually want, in order to get a better allocations. The punters will often borrow on margin to get the financing needed, and it all works well so long as the IPO is "hot" and the shares trade at a premium once they list.

But if they don't...these merry-go-rounds don't last forever.

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