Glorious Property Holdings Ltd (恒盛地產控股) fell as much as 20 percent on its first day of trading in Hong Kong, the fifth straight debut slump for an initial public offering (IPO) in the city.
The stock dropped 15 percent to HK$3.76 at the 4pm close of trading. Glorious Property last week raised HK$9.9 billion (US$1.28 billion) in the largest Hong Kong IPO by a Chinese property company in two years.
The developer joins four other companies, including China South City Holdings Ltd (華南城控股), in falling on the first day in the past two weeks. The declines have heightened investors’ concern the market’s appetite for offerings is waning as Wynn Macau Ltd (永利澳門公司) prepares to start trading on Oct. 9 after raising US$1.63 billion.
“It’s a massacre,” Francis Lun (藺常念), general manager at Hong Kong-based brokerage Fulbright Securities Ltd (富昌證券), said in an interview. “Right now investors have lost all confidence in new shares and I can’t see this changing in the near term.”
Hong Kong’s Hang Seng Index, which has rallied 80 percent from a four-month low on March 9, fell 3.1 percent this week, the biggest drop since the five days ended Aug. 21.
Wilmar International Ltd (豐益國際), the world’s biggest palm oil trader, said on Wednesday it had not decided on the timing of a Hong Kong share sale of its China assets and was monitoring market conditions. Wilmar is delaying the Hong Kong sale to the middle of this month or later from Monday initially, FinanceAsia reported on its Web site on Wednesday.
“The next IPOs will probably have to be priced more attractively,” said Andrew Sullivan, a sales trader at Mainfirst Securities Hong Kong Ltd.
China South City, a developer of logistics centers, tumbled as much as 30 percent on its Hong Kong debut on Wednesday. China Lilang Ltd (中國利郎), owner of the nation’s biggest men’s clothing brand, dropped as much as 6.9 percent and Peak Sport Products Co (匹克體育用品) declined as much as 18 percent over their first day.
Metallurgical Corporation of China Ltd (中國冶金科工), which helped build Beijing’s “Bird’s Nest” stadium, fell as much as 15 percent on its trading debut last Thursday before closing down 12 percent.
Companies including Wynn Macau and Yingde Gases Group Co (盈德氣體集團), China’s largest independent onsite supplier of industrial gases, will start trading on the Hong Kong exchange next week, according to Bloomberg data.
WEAKER ACTIVITY: The sharpest deterioration was seen in the electronics and optical components sector, with the production index falling 13.2 points to 44.5 Taiwan’s manufacturing sector last month contracted for a second consecutive month, with the purchasing managers’ index (PMI) slipping to 48, reflecting ongoing caution over trade uncertainties, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The decline reflects growing caution among companies amid uncertainty surrounding US tariffs, semiconductor duties and automotive import levies, and it is also likely linked to fading front-loading activity, CIER president Lien Hsien-ming (連賢明) said. “Some clients have started shifting orders to Southeast Asian countries where tariff regimes are already clear,” Lien told a news conference. Firms across the supply chain are also lowering stock levels to mitigate
Six Taiwanese companies, including contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), made the 2025 Fortune Global 500 list of the world’s largest firms by revenue. In a report published by New York-based Fortune magazine on Tuesday, Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團), ranked highest among Taiwanese firms, placing 28th with revenue of US$213.69 billion. Up 60 spots from last year, TSMC rose to No. 126 with US$90.16 billion in revenue, followed by Quanta Computer Inc (廣達) at 348th, Pegatron Corp (和碩) at 461st, CPC Corp, Taiwan (台灣中油) at 494th and Wistron Corp (緯創) at
NEW PRODUCTS: MediaTek plans to roll out new products this quarter, including a flagship mobile phone chip and a GB10 chip that it is codeveloping with Nvidia Corp MediaTek Inc (聯發科) yesterday projected that revenue this quarter would dip by 7 to 13 percent to between NT$130.1 billion and NT$140 billion (US$4.38 billion and US$4.71 billion), compared with NT$150.37 billion last quarter, which it attributed to subdued front-loading demand and unfavorable foreign exchange rates. The Hsinchu-based chip designer said that the forecast factored in the negative effects of an estimated 6 percent appreciation of the New Taiwan dollar against the greenback. “As some demand has been pulled into the first half of the year and resulted in a different quarterly pattern, we expect the third quarter revenue to decline sequentially,”
ASE Technology Holding Co (ASE, 日月光投控), the world’s biggest chip assembly and testing service provider, yesterday said it would boost equipment capital expenditure by up to 16 percent for this year to cope with strong customer demand for artificial intelligence (AI) applications. Aside from AI, a growing demand for semiconductors used in the automotive and industrial sectors is to drive ASE’s capacity next year, the Kaohsiung-based company said. “We do see the disparity between AI and other general sectors, and that pretty much aligns the scenario in the first half of this year,” ASE chief operating officer Tien Wu (吳田玉) told an
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