Shares of two mid-sized Chinese lenders that made their debuts on the Stock Exchange of Hong Kong Wednesday traded lower to flat, reflecting investor fears about non-performing loans and bad debt on the mainland.
China Zheshang Bank raised about $1.7 billion in the biggest initial public offering of the year in Hong Kong so far, while Bank of Tianjin's IPO raised another $950 million, with both deals pricing near the bottom of expectations.
"The market response has not been good … a lot of investors are taking the wait-and-see approach (to financial stocks amid the current reporting season). IPO products may not be their choice for the time being," said Ronald Wan, chief executive at Partners Capital International.
By Wednesday afternoon in Asia, Zheshang shares were trading at HK$3.95 versus its IPO price of HK$3.96 after falling to as low as HK$3.93.
Tianjin shares were at HK$7.38 versus its offer price at HK$7.39 after dropping as low as HK$7.33 a share.