Yushujing Technology (688836.SH) IPO Heat and the Noise: The Dark Pool Trading Rumors Are Groundless, and the Risks Behind Should Not Be Underestimated.

Recently, there has been discussion in the market about "speculative purchases" of chips for Yushu Technology (688836.SH) appearing in the off-market, with some intermediaries quoting prices significantly above the issuing price. In response, the reporter sought verification from seasoned professionals in investment institutions, private equity, and brokerages, all of whom reported that they had not observed such situations, indicating that these claims are largely based on rumors. They also pointed out that these private off-market agreements and transactions raise questions about compliance, putting investors at considerable risk of losses. CITIC Securities, the lead underwriter for Yushu Technologys IPO, also reminded investors that securities transactions must strictly comply with laws and regulations, and trading should only be conducted through legally recognized channels with real-name accounts. They advised against blindly following speculation and to adhere to rational and value-based investing while carefully assessing investment risks. "Off-market trading" is largely speculative. Regarding the recent occurrences of "off-market trading" related to Yushu Technology, the reporter verified this with multiple investment institutions, private equity firms, and brokerage wealth management departments. Responses indicated that there was "no awareness of such occurrences; in reality, it basically does not exist." A private equity leader told the reporter that off-market agreements for acquiring new shares at predetermined prices have primarily been the domain of a few intermediaries targeting specific stocks on the Beijing Stock Exchange. The claims surrounding Yushu Technology's involvement in such transactions are merely speculative, and even if they did occur, they would involve exceedingly rare cases. "We cannot assume that it has become a widespread occurrence based on hearsay and scattered private agreements," emphasized the private equity leader. A representative from the Southwest Research Institute indicated that dark pool trading is a sporadic and niche behavior in the A-share market and has not developed into a scaled or normalized trading atmosphere, lacking industry-wide prevalence. A representative from Guotai Junan Investment Bank also informed the reporter that such off-market agreements lack centralized matching rules, public quoting mechanisms, and standardized delivery guarantees. Moreover, the acquisition quotes provided by intermediaries often deviate significantly from actual transaction prices, with some quotes potentially being "highly priced without a market," serving mainly as exploratory quotes rather than genuine buy orders. Navigating the legal red line Market participants pointed out that it is not uncommon for investors to confuse this type of trading with "dark pool trading" in the Hong Kong market, yet the two have fundamentally different institutional foundations and legal responsibilities. In the Hong Kong market, on the trading day before new shares officially list on the Hong Kong Stock Exchange, from 16:15 to 18:30, certain investors can buy and sell shares that they have secured a allocation for through internal matching systems of brokerages. "Such transactions in the Hong Kong market have clear regulatory guidelines and are conducted through brokerage trading systems, but even so, their liquidity and transparency are significantly lower than those in the on-market, leading to potential volatility in prices. Instances of dark pool trading in Hong Kong falling below issuance price are not uncommon." "However, in the A-share market, privately buying or selling publicly issued stocks or making subsequent revenue agreements is fundamentally treading the line of compliance," stated a legal expert. Article 37 of China's Securities Law clearly stipulates that publicly issued securities must be listed and traded on legally established stock exchanges or other nationally approved securities trading venues. Article 58 explicitly prohibits lending one's securities account or using another's securities account to engage in securities trading. Numerous researchers and investment bankers from brokerages expressed that the private, non-public matching behaviors between a small number of intermediaries and select investors facing allocation risks present multiple concerns including unclear qualifications of counterparty risks, inadequate funding settlemen, and non-standard account operations, which highlight significant compliance and legal risks. Additionally, a private equity firm leader told the reporter that "this type of chip acquisition model often involves disguised lending or borrowing of securities accounts, or privately transferring IPO subscription rights, which could be considered invalid due to violations of agreements; should any issues arise regarding payment defaults or delivery disputes, investors may find it difficult to protect their rights through judicial means." Beware of speculative risks There are also voices interpreting the new stock "dark pool" trading as a signal of scarce chips and a significant increase in stock price post-listing. However, market experts urge investors to approach this rationally. On one hand, as a "star" enterprise in the Siasun Robot & Automation sector, Yushu Technology's IPO represents another important testament to the capital market's service to hard technology and support of the real economy, garnering wide attention. On the other hand, many associate the "low allocation rate" with expectations of soaring stock prices post-listing, which requires more careful consideration. A head of an institution remarked, "The new stock speculation intermediaries operate similarly to gambling in the dark web." From this issuance price perspective, the listing pricing for Yushu Technology is set at 150.8 yuan per share, corresponding to a price-to-earnings ratio of 219 times its net profit for 2025, substantially higher than the industry average P/E ratio of 38 times. "This price reflects a thorough negotiation considering the company's industrial position, R&D strength, and developmental potential, encapsulating the investment value based on the current fundamentals," a public fund manager told the reporter. "The allocation rate is influenced by multiple factors such as the scale of issuance and subscription numbers; however, the demand for subscriptions and market sentiments are not static, meaning one cannot directly conclude that the company's stock price will significantly rise immediately after listing." In actuality, various market participants remain cautious regarding Yushu Technologys market performance post-listing: the optimistic side favors its profitability and advantages in self-research in full stack, as well as the long-term potential in embodied intelligence; the cautious side focuses on performance stability, prospects for commercial implementation, and sustainability of high growth. Ultimately, the issuance price of the enterprise is a culmination of negotiations based on the company's value, reflecting professional market institutions' expectations of the company's current value. "Speculative" trading occurs outside of professional institutions, relying on subjective speculation regarding the company's listed stock price. "Such off-market transactions lack a unified pricing standard, relying entirely on private negotiations between buyers, sellers, and intermediaries, leading to potentially inflated valuations detached from the company's true fundamentals," indicated a representative from the Southwest Research Institute. Sinolink Investment Bank further remarked, "The actual transaction volume and proportion under 'speculative' pricing are minimal, having very limited effects on stock price trends, and one cannot equate rare occurrences with second-tier market price expectations." Experience has repeatedly shown that without fundamental support, even if a company's stock price rises in the short term, it will eventually face a longer return to valuation. In this process, investors who chase high prices may incur significant losses. Over time, this not only promotes speculative trading practices but also undermines the resilience and confidence of the capital market. In light of this, many experts interviewed have advised investors to remain rational and calm amidst the clamor of off-market "speculative acquisitions," insisting on participating in investments through legally compliant personal real-name securities accounts. Only through rational investment and careful decision-making can one ensure long-term gains. Moreover, legal experts stated that "such clandestine operations do not rule out the presence of a longer chain of interests behind them; the regulatory authorities will resolutely investigate and address market manipulation behaviors through emotional incitement and control of chips to maintain orderly market trading." Previously, Yushu Technology's founder Wang Xingxing also pointed out during a roadshow, "We hope that investor friends buy our companys stocks because they recognize the company's value, rather than for speculation." This article is reproduced from "Caixin News"; GMTEight editor: Li Fo.