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Market Spotlight

IPO fatigue hits Hong Kong despite debut boost for JD spinoff

Most of 2021's torrent of listings are trading below their issue price

NARAYANAN SOMASUNDARAM, Nikkei Asia chief banking and financial correspondent | Hong Kong

HONG KONG -- The best start to a year for new equity listings in Hong Kong is being tarnished by the rising number of offers that are slumping on debut, raising questions over the continued strength of the listing boom.

While JD Logistics rose by as much as 18% on Friday when it made its debut after a $3.1 billion initial public offering, it is proving the exception. Two-thirds of the new listings this year are in the red and on average have tumbled by a fifth, the worst among major global exchanges. These listings combined account for almost half the funds raised in Hong Kong this year.

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