Why IPO blocks market liqudity

Hi guys,

Why does IPO blocks mkaret liqudity.

Quote: From BOA, The CSRC approved 12 new IPOs, possibly locking up RMB 459bn.

I am not following the logic.

man, I am not an expert on this but intuitively, would it be that if this amount of money was not spent on IPOs, it could have been spent on other stocks?

That is the total number of shares on the IPO’s, multiplied by the initial offering price.

It’s locked money because the public have submitted orders to buy shares at that amount, but the orders have still not been processed, or the market for secondary trading has not opened for exchange. So that amount of money is locked up and the whole liquidity of the market dried up momentarily.

I Seee…