Century Digital today once again sealed the daily limit down. It has already been two consecutive 30CM limit-downs. For second-tier new shares on the National Equities Exchange and Quotations, the daily price limit is 30%, hence they’re called 30CM. Calculating from the high on September 22, the stock price has already pulled back more than 56%—not just close to a half, but more than a “halving.”

Not just it. The near-term second-tier new shares overall are weakening. Kaida Heavy Industry and Shenyin Goup have both hit limit-downs in succession, while Zhiyai Technology, Xinnovo, Baimu Ke, and C-Plastic are also near the top of the losers’ list.

Newly listed stocks collectively lost momentum as the premium from the early listing period started to be unwound. Back then, people were betting on the “newness” and on the idea that the chips were clean. When sentiment cooled, the first to be dumped were the hottest stocks that had been rushed into at the peak.

In the first few days after a newly listed stock starts trading, sentiment runs hottest and volatility is at its fiercest. When it rises, it surges hard; when it falls, it falls even harder. People who rush in focused on just the words "newly listed stock" are most likely to be the ones who catch the last baton at the high point.