economy - Underwriters trying to cash in on Baidu

Well, we all knew from the beginning Baidu's IPO would be hot and create a bubble in the second China/internet dream that would cost ignorant US investors a lot of money. During the first bubble this was just standard procedure, proving that donkeys are more sensible than those investors. Now the underwriters have decided to sell off their Baidu stock before the bubble is down, making some of the regular commentors like Billsdue really upset, since they do not stick to their original promises.

If the company reneges on such a visible promise made in the IPO prospectus, how can investors have any confidence in what Baidu says? The Guardian has an interesting article on Baidu, and especially the ongoing piracy issues that surround Baidu's operations. Like I said, if I were an insider I would want to dump my shares as soon as possible.

What a nasty world! Sue them, I would say, but that is probably going to happen anyway. And save some money for a good China expert who has no direct financial interests in these deals.

On the Chinese stock markets