Shares in Zhengzhou Coal Mining tumbled in their Hong Kong debut after underwriters of the $300 million offering were stuck in the rare position of holding unsold stock, underscoring poor demand that bodes ill for Chinese insurer PICC's debut on Friday.
The slump underscores the difficult environment for new listings in Hong Kong, which for years was the world's top destination for initial public offerings. State-owned PICC Group raised $3.1 billion in an offering last week after pricing the deal near the bottom of its indicative range.
New stock offerings in Hong Kong have dwindled and volumes are down by about 63 percent so far this year, according to Thomson Reuters data.
Zhengzhou Coal Mining Machinery Group, which is already listed in Shanghai, had priced the 221.1 million shares at HK$10.38 each last week, also at the bottom of its indicative range of HK$10.38 to HK$12.28.
As of 0217 GMT, the stock was trading at HK$9.53 after falling as low as $HK9.50. The benchmark Hang Seng index gained 0.8 percent.