Wild swings are a regular occurrence in HK market

Hong Kong

THE world's best-performing new listing this year is a Hong Kong civil engineering stock soaring for reasons that appear unrelated to its business.

Luen Wong Group Holdings Ltd jumped 1,438 per cent on the first trading day after its April initial public offering (IPO) and is now 6,715 per cent above its offer price. The company, which reported sales of US$41 million last year and profit of US$1.1 million from projects such as laying roads and digging sewers, is today worth US$2.9 billion.

The run-up highlights quirks in Hong Kong's stock market, where wild swings are a regular occurrence, many firms have a tiny portion of their shares available to trade and there is a healthy side…