Cornerstone investments and ethics

HONG KONG (Dow Jones Investment Banker) – Cornerstone investments have remained a common component of IPOs in Hong Kong in 2010 and that is helping fuel an argument around just how fair they are.

For investment banks, the involvement of cornerstone investors provides leadership and momentum, sending a strong signal to the market that the deal constitutes a worthwhile investment. The reality is also that, in a volatile trading environment, they make possible the launch of more challenging transactions. read