Chinese enterprises listed in Hong Kong: Big winners, disillusioned people

Chinese enterprises listed in Hong Kong: Big winners, disillusioned people

Hong Kong stocks ended the last trading day of June in the red as the Hang Seng index closed down 0.57% at 28,827.95 points.

Office of the Hong Kong Stock Exchange in the Central District. (Photo courtesy: AFP)

Major Asian stock indexes were mixed on the trading day of June 30. Mainland China stock market remained in the green despite the official purchasing managers’ index (PMI) in the country’s manufacturing sector slipped slightly from 51.0 in May to 50.9. in June, according to data released this morning by the National Bureau of Statistics of China.

The Shanghai Composite Index this afternoon rose 0.50% to 3,591.20 points while the Shenzhen Component rose 1.08% to 15,161.70 points.

Chinese pharmaceutical company Hutchmed today won a big victory in its secondary listing in the Hong Kong market after two years of delaying this plan. Hutchmed shares traded at HK$64.50 ($8.31), up more than 60% from the asking price.

Hutchmed, a cancer drug developer backed by billionaire Li Ka-shing, has raised $537 million in a Hong Kong listing. They originally planned to list in Hong Kong in 2019, but this plan was shelved due to the market context at the time. there’s a lot of uncertainty.

Hutchmed’s secondary listing follows a huge success in first-time stock sales in Hong Kong in the first half of 2021, with a record $28 billion in fundraising, according to aggregated data from Bloomberg. . In the US, shares of New York-listed Hutchmed are up 3.8% year-to-date, while shares of the London-listed pharmaceutical company are up 3.3%.

In contrast, shares of Chinese milk tea chain Nayuki Holdings today “evaporated” 13% on the day of listing on the Hong Kong Stock Exchange.

Before Hutchmed, nearly 59% of the 44 companies that plan to list in Hong Kong in 2021 ended the first trading session with share prices above the list price, of which 8 companies recorded share prices. increased by more than 50% compared to the opening sale.

Earlier this week, shares of real estate management company Yuexiu Services Group ended its share offering in Hong Kong on June 28 not as expected with a price unchanged from the IPO price of 4.88. Hong Kong Dollar. Meanwhile, still same day listing in Hong Kong, Shares of Chinese compressor maker Morimatsu International Holdings surged 259% again.

In another disappointing listing of a Chinese company, shares of Chinese dairy group Youran fell 12% after raising $643 million from a Chinese company. IPO.

In Japan, the Nikkei 225 index closed flat today at 28,791.53 points, while the Topix index slid 0.3% to 1,943.57 points.

Meanwhile, South Korea’s Kospi gained 0.3% to close at 3,296.68. Notably, the rally of technology stocks with shares of chip maker SK Hynix increased by 2% and shares of LG Electronics gained 1.55%.

In Australia, the S&P/ASX 200 edged up 0.16% to 7,313.00 as shares of large mining companies closed in positive territory, with Rio Tinto up 1.31% and Fortescue Metals stock rose nearly 1%.

Brent crude oil prices traded in Asia hours this afternoon inched up 0.16% to $74.88/barrel, while US crude oil futures rose 0.42% to $73.29/barrel.

“Contrary to India, the increase in world oil prices is a positive development for Malaysia,” experts from Mizuho Bank assessed. Malaysia is a key oil exporter in the region. In the 2021 budget plan, Malaysia estimates the price of oil at 42 USD/barrel while oil price is currently above 73 USD/barrel. This will generate an additional revenue for Malaysia.

In the currency market, the US dollar index against other strong currencies jumped to 92.057, from above 91.7 recorded at the beginning of the week. The Japanese yen appreciated and traded at 110.47 JPY “eats” 1 USD, compared with the beginning of the week at 110.8 JPY to 1 USD. In contrast, the Australian dollar depreciated to 1 AUD for 0.7516 USD, compared with 1 AUD/0.758 USD at the beginning of the week.