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| Chabaidao had biggest debut flop in Hong Kong since 2015 |
Hong Kong Exchanges and Clearing, which operates Asia's third-largest stock market, had a 13 percent drop in profit for the first quarter with fewer new listings and lower turnover.
From January to March this year, net profit was HK$2.97 billion (US$380 million).
Hopefully the second quarter gets better?
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| Bloomberg followed Chabaidao's first trading day |
How did it do on its first day of trading yesterday?
Soon after the markets opened, it plunged 38 percent to HK$10.80 before finishing the day slightly higher at HK$12.80.
It was considered the worst debut since 2015 for a company that had raised at least US$300 million, according to Bloomberg.
Yikes.
Another company, Tianjin Construction Development Group also made its debut in the market and it also tanked, dropping more than 30 percent in value after having raised US$20 million in its IPO.
Not exactly what the Hong Kong government had in mind when it had hoped the stock market would help reboot the city's trading market, which has seen a drop in new listings for four consecutive years.
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| Lee optimistic the market will be bullish |
"Dozens of companies have applied to the mainland regulators for going public in Hong Kong, including large companies from traditional industries like manufacturing and logistics, as well as key companies from high value-added industries like AI and fintech," he said.
"We have also been actively promoting financing in Hong Kong to top unicorn companies in the mainland," Lee said, referring to startups worth at least US$1 billion.
Last year the Hong Kong exchange only saw 73 IPOs, raising HK$46.3 billion...
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