This marks a sharp reversal from earlier in the year, when many market debutants in Hong Kong – one of the world’s biggest venues for IPOs – chalked up massive first-day pops, delivering rich returns for investors. The more muted listing gains could dampen what has been a blistering year, with almost US$33 billion raised so far, and a large portion of it being in sectors such as tech that have been targeted by Beijing.
China’s regulatory crackdown on some of its biggest industries is having a knock-on effect on the post-listing performance of Hong Kong’s initial public offerings.
Shares of firms that have gone public in the financial hub this year have climbed just 4% from their offer prices on average, according to data compiled by Bloomberg on companies that raised at least US$50 million. The gains are much smaller when compared to those seen in India and South Korea, and even Thailand.
