Date
26 July 2017
Huatai Securities failed to sizzle on its Kong Kong debut as investors took quick profits. Photo: Bloomberg
Huatai Securities failed to sizzle on its Kong Kong debut as investors took quick profits. Photo: Bloomberg

Huatai Securities fails to match expectations in HK debut

Huatai Securities Co. shares posted weaker-than-expected gains on their debut on the Hong Kong bourse Monday as retail investors took quick profits.

The stock finished at HK$26.05, up 5 percent from its offer price of HK$24.80, after surging as much as 11 percent in the grey market last week.

Huatai Securities, China’s biggest broker by trading volume, raised US$4.5 billion in its Hong Kong IPO after pricing the shares at the top of an indicated range.

The debut of the brokerage, which is controlled by the Jiangsu provincial government, failed to match market expectations.

Reuters cited some analysts as saying that sentiment may have been tempered by comments from China’s central bank late last week.

The People’s Bank of China on Friday warned of a slowing economy and rising debt levels, while calling for a “healthy stock market”. 

Cornerstone investors in Huatai included Tencent Holdings Chairman Pony Ma and Och-Ziff Capital Management Group.

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CG/RC

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