Glorious Property Holdings Ltd (恒盛地產控股) fell as much as 20 percent on its first day of trading in Hong Kong, the fifth straight debut slump for an initial public offering (IPO) in the city.
The stock dropped 15 percent to HK$3.76 at the 4pm close of trading. Glorious Property last week raised HK$9.9 billion (US$1.28 billion) in the largest Hong Kong IPO by a Chinese property company in two years.
The developer joins four other companies, including China South City Holdings Ltd (華南城控股), in falling on the first day in the past two weeks. The declines have heightened investors’ concern the market’s appetite for offerings is waning as Wynn Macau Ltd (永利澳門公司) prepares to start trading on Oct. 9 after raising US$1.63 billion.
“It’s a massacre,” Francis Lun (藺常念), general manager at Hong Kong-based brokerage Fulbright Securities Ltd (富昌證券), said in an interview. “Right now investors have lost all confidence in new shares and I can’t see this changing in the near term.”
Hong Kong’s Hang Seng Index, which has rallied 80 percent from a four-month low on March 9, fell 3.1 percent this week, the biggest drop since the five days ended Aug. 21.
Wilmar International Ltd (豐益國際), the world’s biggest palm oil trader, said on Wednesday it had not decided on the timing of a Hong Kong share sale of its China assets and was monitoring market conditions. Wilmar is delaying the Hong Kong sale to the middle of this month or later from Monday initially, FinanceAsia reported on its Web site on Wednesday.
“The next IPOs will probably have to be priced more attractively,” said Andrew Sullivan, a sales trader at Mainfirst Securities Hong Kong Ltd.
China South City, a developer of logistics centers, tumbled as much as 30 percent on its Hong Kong debut on Wednesday. China Lilang Ltd (中國利郎), owner of the nation’s biggest men’s clothing brand, dropped as much as 6.9 percent and Peak Sport Products Co (匹克體育用品) declined as much as 18 percent over their first day.
Metallurgical Corporation of China Ltd (中國冶金科工), which helped build Beijing’s “Bird’s Nest” stadium, fell as much as 15 percent on its trading debut last Thursday before closing down 12 percent.
Companies including Wynn Macau and Yingde Gases Group Co (盈德氣體集團), China’s largest independent onsite supplier of industrial gases, will start trading on the Hong Kong exchange next week, according to Bloomberg data.
SEMICONDUCTORS: The firm has already completed one fab, which is to begin mass producing 2-nanomater chips next year, while two others are under construction Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, plans to begin construction of its fourth and fifth wafer fabs in Kaohsiung next year, targeting the development of high-end processes. The two facilities — P4 and P5 — are part of TSMC’s production expansion program, which aims to build five fabs in Kaohsiung. TSMC facility division vice president Arthur Chuang (莊子壽) on Thursday said that the five facilities are expected to create 8,000 jobs. To respond to the fast-changing global semiconductor industry and escalating international competition, TSMC said it has to keep growing by expanding its production footprints. The P4 and P5
DOWNFALL: The Singapore-based oil magnate Lim Oon Kuin was accused of hiding US$800 million in losses and leaving 20 banks with substantial liabilities Former tycoon Lim Oon Kuin (林恩強) has been declared bankrupt in Singapore, following the collapse of his oil trading empire. The name of the founder of Hin Leong Trading Pte Ltd (興隆貿易) and his children Lim Huey Ching (林慧清) and Lim Chee Meng (林志朋) were listed as having been issued a bankruptcy order on Dec. 19, the government gazette showed. The younger Lims were directors at the company. Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte Ltd are the trustees, according to the gazette. At its peak, Hin Leong traded a range of oil products, made lubricants and operated loading
The growing popularity of Chinese sport utility vehicles and pickup trucks has shaken up Mexico’s luxury car market, hitting sales of traditionally dominant brands such as Mercedes-Benz and BMW. Mexicans are increasingly switching from traditionally dominant sedans to Chinese vehicles due to a combination of comfort, technology and price, industry experts say. It is no small feat in a country home to factories of foreign brands such as Audi and BMW, and where until a few years ago imported Chinese cars were stigmatized, as in other parts of the world. The high-end segment of the market registered a sales drop
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