Massive wipeouts in IPOs on HK's Growth Enterprise Market cause concern
Concentrated holdings, preferred investors, low trading volumes at issue
Hong Kong
HONG KONG'S Growth Enterprise Market has seen a string of the world's best stock debuts this year. It's also been home to some of the biggest plunges, wiping out gains and raising questions about how the exchange operates.
Vegetable supplier Goal Forward Holdings Ltd, whose shares jumped 1,500 per cent on their October debut, is trading 20 per cent below its offer price. Cmon Ltd, designer of board games including "Zombicide: Black Plague," gained 1,330 per cent on its first trading day on Dec 2 and then fell for six consecutive sessions to below its offering price. It's a pattern that plays out regularly on the city's exchange for small companies.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Wall Street Journal moves Asia headquarters from Hong Kong to Singapore
Macquarie sees biggest profit dip in 15 years on commodities downturn
HSBC appoints ex-Citi banker as new Singapore head of global banking
H2G Green chief to stand trial on Aug 5 amid MOM probe
Dasin Retail Trust’s trustee-manager chairman, directors deny allegations of misconduct
Microsoft adds security chiefs to product groups in wake of hacking woes