Most newly listed stocks in the Hong Kong market ended 2021 below their offering price, driven in large part by Beijing’s ongoing tech crackdown.
More than 70 of Hong Kong's 96 newly listed stocks in 2021 ended the year below their initial public offering price, according to Refinitiv data.
Amongst the top 10 IPOs, eight listings ended the year lower with electric car makers Xpeng and Li Auto as the only winners.
Video sharing platform Kuaishou Technology led the pack as the largest IPO at $6.2 billion raised but its share price fell 37 percent from HK$115 to $72.05.
Tech Crackdown
The ongoing tech crackdown in China has created significant uncertainty for bottom lines and business models in the sector, leading to souring market sentiments.
The Hong Kong Exchanges and Clearing was expected to close the year as the fourth most popular venue for IPOs, according to KPMG – the first ranking drop since 2017 – behind Nasdaq, New York Stock Exchange and Shanghai Stock Exchange.
Most recently, the crackdown has extended to livestreamers online, in particular with regards to their involvement in marketing financial products.
