Hong Kong’s Hottest IPOs Bring Worst Returns to Investors–Bloomberg

What happened: Stocks with high subscription ratios listed on Hong Kong’s stock exchange this year actually tended to underperform their less popular counterparts, Bloomberg discovered. Despite initial clamor from investors, Ping’an Healthcare and Technology Co. has dropped 37% since its May listing and Meituan-Dianping sank 23%. On the rise were lesser-known property companies Redsun, Zhenro and DaFa (18% on average) and Innovent Biologics Inc., which has jumped 38% since listing last month.

Why it’s important: Generally speaking, it’s been a rough year for domestic traders. China’s stock markets have lost $2.7 trillion since late January amid trade war tariffs, rising interest rates, and a crackdown on gaming, among other things. At times tech stocks have seemed especially vulnerable, with giants like Tencent and Alibaba (which is listed on the NYSE) both seeing yearly lows last month. Still, companies such as the Suzhou-based unicorn Innovent show that there are still bright spots on the horizon.

Bailey Hu is based in China’s hardware capital, Shenzhen. Her interests include local maker culture, grassroots innovation and how tech shapes society, as well as vice versa. More by Bailey Hu

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