Homepage / Asia / Tech giant's disappointing debut casts a cloud over Chinese IPOs in Hong Kong
Amazon says this Prime Day was its biggest shopping event ever Kudlow says President Trump is 'so dissatisfied' with China trade talks that he is keeping the pressure on As stocks regain their footing, an ominous warning looms Goldman Sachs downgrades Clorox to sell, says valuation is 'unsustainably high' How Satya Nadella has spurred a tripling of Microsoft's stock price in just over four years Kudlow says economic growth could top 4% for 'a quarter or two,' more tax cuts could be coming The one chart that explains Netflix’s stunning comeback US housing starts plunge 12% in June to a nine-month low Aerospace titans Boeing and Airbus top $110 billion in orders at Farnborough Target uses Prime Day to its advantage, logging its 'biggest online shopping day' so far this year Billionaire Marc Lasry sees bitcoin reaching up to $40,000 as it becomes more mainstream and easier to trade These are the 10 US airports where you're most likely to be hacked Amazon shares slightly higher as investors await Prime Day results Wreck of Russian warship found, believed to hold gold worth $130 billion A bullish ‘phenomenon’ in bond market is weeks away from fading, top credit strategist says Stocks making the biggest moves premarket: MS, GOOGL, TXN, UAL, NFLX & more Twitter shares up 50% since late April means most upside priced in, analyst says in downgrade EU fines Google $5 billion over Android antitrust abuse Mortgage applications fall 2.5% as buyers struggle to find affordable homes America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson Investors are getting spooked as the risk of a no-deal Brexit rises EU expected to fine Google $5 billion over Android antitrust abuse Ex-FBI chief James Comey urges Americans to vote for Democrats in midterm elections Elon Musk apologizes to British cave diver following baseless 'pedo guy' claim Disney, Comcast and Fox: All you need to know about one of the biggest media battles ever Xiaomi shares notch new high after Hong Kong, mainland China stock exchanges reach agreement The trade war is complicating China's efforts to fix its economy European markets set for a strong open amid earnings; Google in focus Hedge fund billionaire Einhorn places sixth in major poker tournament The biggest spender of political ads on Facebook? President Trump Asian stocks poised to gain after Fed's Powell gives upbeat comments; dollar firmer Stocks are setting up to break to new highs Not all FAANG stocks are created equal EU ruling may be too little, too late to stop Google's mobile dominance Cramer explains how Netflix's stock managed to taper its drop after disappointing on earnings Airbnb condemns New York City's 'bellhop politics,' threatens legal retaliation Amazon sellers say they were unfairly suspended right before Prime Day, and now have two bad choices Investor explains why 'duller' tech stocks can have better returns than 'high-flying' tech names Elon Musk is 'thin-skinned and short-tempered,' says tech VC Texas Instruments CEO Brian Crutcher resigns for violating code of conduct Google Cloud Platform fixes issues that took down Spotify, Snapchat and other popular sites Uber exec: We want to become the 'one stop' transportation app 'What a dumb hearing,' says Democrat as Congress grills tech companies on conservative bias Amazon shares rebound, report says Prime Day sales jumped 89 percent in first 12 hours of the event How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election


Tech giant's disappointing debut casts a cloud over Chinese IPOs in Hong Kong

Mobile phone maker Xiaomi’s disappointing initial public offering has cast a cloud over potential new listings by Chinese companies in Hong Kong. The intensifying trade conflict between Beijing and Washington is only further deflating sentiment.

Xiaomi shares closed lower Monday in Hong Kong on its first day of trading after the world’s fourth-largest mobile phone maker priced an IPO that gave it a valuation of about $54 billion — half of what it had originally expected.

And though the Beijing-based company’s shares subsequently rebounded, its experience was closely watched by other companies considering or planning possible Hong Kong IPOs, including food delivery platform Meituan Dianping and financial services company China Renaissance, which have both filed to list on the city’s exchange.

“The sentiment in the market is not extremely good,” Jackson Wong, associate director at Huarong International Financial Holdings, told CNBC of the current outlook for Hong Kong listings.

In a blow to the local exchange, Chinese internet giant Tencent Holdings said in a statement on Sunday that it plans to list its online music entertainment business, Tencent Music Entertainment Group, on an unspecified U.S. exchange.

Tencent’s turn toward the U.S. reflects some of the problems the East Asian finance hub has recently faced, which, according to Wong, include disappointing valuations and waning investor enthusiasm.

Recent Hong Kong IPOs, including companies such as online healthcare provider Ping An Good Doctor and gaming hardware company Razer, were up to a thousand times oversubscribed, whereas Xiaomi’s was much less, indicating fervor has waned, he said.

Investors “are not giving a huge premium to these so-called new economy technology stocks at this point,” Wong said.

“New economy” largely refers to companies riding the wave of the expanding mobile internet, such as online shopping platforms and other web-based services including ride-hailing, food delivery and financial services.

Even financial services firm China Renaissance is tied to the sector, saying on its website that it serves “new economy entrepreneurs and investors globally.”

Sentiment surrounding Chinese companies with global ambitions has taken a hit after the U.S. fired a trade salvo against Beijing on July 6, imposing 25 percent tariffs on $34 billion in Chinese goods, and China quickly responded with retaliatory tariffs.

The administration of U.S. President Donald Trump upped the ante on Tuesday, announcing a list of Chinese products with an annual trade value of $200 billion that may be subject to new 10 percent tariffs.

The levies are subject to a two-month review process so will not take effect immediately, possibly providing time for the two sides to negotiate.

Still, the trade war has spooked investors and business leaders. Xiaomi CEO Lei Jun referenced worries over the impact of such tensions on the investment climate in an otherwise upbeat speech he gave at the company’s festive IPO launch on Monday.

“At this critical moment in Sino-U.S. trade relations, the global capital markets are in constant flux,” Lei told investors and journalists gathered at the Stock Exchange of Hong Kong.

Wong said that the trade dispute is helping to suppress sentiment toward IPOs on the perception that Chinese companies “might not be able to grow as fast as they originally thought.”

Charles Li, CEO of the Hong Kong exchange, said investors and companies ultimately decide what is in their best interests.

“The market is open to everybody,” he told reporters Monday at the exchange shortly after Xiaomi began trading. “Every investor is free to come here to invest.”

“Every issuer is free to come here to raise capital. If you don’t like the price you can stay away.”

Hong Kong’s exchange said in an email to CNBC that the city’s open and globalized economy leaves it well positioned to attract Chinese IPOs.

“Most mainland new economy companies have substantial international exposure and involvement in terms of business aspirations and investments by international private equity/venture capital, on top of mainland investors,” it said. “As a result, a Hong Kong listing is their most natural first choice.”

Meanwhile, listing in the U.S. remains attractive for its trading volume compared with Hong Kong, according to Ryan Roberts, senior research analyst at MCM Partners in Hong Kong.

But an advantage the Hong Kong market enjoys that can’t be overlooked is physical proximity to China — as well as cultural affinity.

“You’re a little bit closer geographically, conceptually to a lot of these Chinese companies,” he said. “Investors looking at some of those names coming to Hong Kong are definitely going to weigh that as well and I think that actually helps.”

Source: cnbc china
Tech giant's disappointing debut casts a cloud over Chinese IPOs in Hong Kong

Comments are closed.