As in Shanghai, so in Hong Kong. The initial public offering of shares in China Railway Construction Corp. in Hong Kong saw only a modest 12% pop during the first day of trading, the smallest gain in a Hong Kong trading debut since November. The Shanghai IPO earlier in the week was the worst first-day gain there since 2006.
China Railway Construction, which shares a duopoly with China Railway Group over railway construction in China, raised a combined $5.4 billion in the two offerings. The lackluster IPO makes one wonder how robust China’s stock market boom remains, and suggests that other new share offerings might struggle to find buyers for as long as world market conditions remain so uncertain.