BRIEF: Nanhua Futures slumps in Hong Kong trading debut
Shares of Nanhua Futures Co. Ltd. (2691.HK; 603093.SH) fell 24% on their first trading day in Hong Kong on Monday, as the company raised HK$1.2 billion ($154 million) by selling about 108 million shares for HK$12 each. The listing only drew mild investor interest, with the portion for local investors only 0.9 times oversubscribed and the international portion just 0.99 subscribed.
Nanhua is among a growing group of companies already listed on China’s domestic markets that are now making second listings in Hong Kong. Its Hong Kong listing comes as it steps up an overseas expansion to meet demand from Chinese businesses going global. Its revenue from overseas financial services accounted for more than 11% of its total last year, up more than 2 percentage points from 2023 and 8 percentage points from 2022.
Nanhua’s first-day performance mirrored similarly weak trading debuts for three other Chinese companies on Monday. Shares of drugmaker B&K Corp. (2396.HK) fell 29% on the day, cultural tourism company Impression Dahongpao (2695.HK) fell 35% and hospital operator BenQ BM (2581.HK) fell nearly 50%.
By Doug Young
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