Taking cover from falling stocks

Pre-IPO trades have proven a good way for hedge funds to get the inside track on hot stock listings in Asia. But with US credit problems and equity volatility on the rise, investors need to protect themselves against the possibility of a downturn. William Rhode reports

asiarisk-dec07-24-gif

Credit problems in the US and an increase in equity volatility worldwide have not dampened activity in the lucrative, multi-billion-dollar business for pre-initial public offering (IPO) trades in Asia. But awareness that the region's stock markets may be overheated, particularly in India and China, is prompting pre-IPO investors to increase their equity demands and ramp up hedging activities in anticipation of a potential downturn.

"The business of pre-IPOs in Asia is still going strong; we're

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here