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.

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.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook