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HK Aims to Retain IPO Mkt Crown as Media Flags Post-Listing Price Downfall
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Hong Kong is vying with the US for the top position in the global IPO market, while also facing challenges over a growing trend where the stocks sink after their debut, CNBC reported. According to data from KPMG, Hong Kong ranked first globally in IPO fundraising last year, toppling the New York Stock Exchange and Nasdaq. Data from HKEX (00388.HK) showed that more than 600 companies were waiting to list on HKEX as of last Thursday (4th). However, IPO performance in Hong Kong has generally been weak, report said. Of the 179 listings conducted since January 2025, about half have seen their share prices decline over the past three months, according to Wind data. In comparison, the HSI recorded a moderate downfall over the same period, while the FTSE Renaissance Global IPO Index grew by more than 10%. For stocks eligible under the Shanghai- and Shenzhen-Hong Kong Stock Connect scheme, which allows mainland Chinese investors to invest directly, the performance divergence has been even more pronounced. Among the 33 Hong Kong-listed stocks included in Shanghai- and Shenzhen-Hong Kong Stock Connect on March 9, more than half saw their share prices leap by over 1x between their IPO and the last trading day before inclusion. Eight of these stocks, including AI startup DEEPEXI TECH (01384.HK), ballooned by more than 300% during that period. Yet, all eight have since slid by 10% or more after inclusion. As of last Wednesday (3rd), DEEPEXI TECH had lost about 51%. The share price of KNOWLEDGE ATLAS (02513.HK), which was included in Southbound trading today, and that of MINIMAX-W (00100.HK), which may be added to the scheme as early as this summer, will be closely watched. Beijing authorities are keeping tabs on the situation, report told. China’s state-run media Securities Times became the latest outlet on May 29 to highlight concerns over certain Hong Kong IPOs that experienced upsurges followed by collapses. In a statement to CNBC, HKEX said that share price performance is influenced by various factors. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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