Why Hong Kong developer CK Asset sold a mall at an ‘exceptionally cheap’ price
With the “exceptionally cheap” sale of a vacant Hong Kong shopping mall, developer CK Asset Holdings is freeing up capital for other projects, while the buyer will have to be patient because the location will struggle to attract tenants in the short term, according to analysts. The developer completed the mall in its residential project Seaside Sonata on Hai Tan Street in Sham Shui Po five years…
Dongshan Precision Manufacturing Co., a prominent circuit board supplier for artificial intelligence (AI) servers, experienced a disappointing initial public offering (IPO) in Hong Kong, with its shares plummeting by up to 6% on the debut trading day. The underwhelming performance was attributed to a broader sell-off in China's AI and tech hardware sectors, causing investor sentiment to wane.
The company priced 113.8 million shares at HK$86.80 each, below its maximum price by 7.5% and significantly discounted at 27% compared to its Tuesday closing price on the Shenzhen-listed stock. Despite this, the Shenzhen-listed shares have plummeted over 63% since July, bringing the company's market capitalization to a reduced 185 billion yuan (US$27.7 billion).
"Chinese AI-related stocks' market enthusiasm has visibly waned since July," remarked Stevan Tam, associate director at Fulbright Financial. "Once valuations face a correction, regaining the prior speculative premium is challenging unless overseas markets witness another robust rebound." The Hong Kong market, primarily composed of chipmakers and AI stocks listed on the Shanghai exchange, has also seen a decline of over 40% from its July peak.
Other mainland PCB manufacturers listed in Hong Kong this year, such as Victory Giant Technology and Guangzhou Guanghe Technology Co., have also declined by around 70% from their peaks and now trade below their offer prices. Zhongji Innolight, the city's largest listing in recent times, has experienced a 26% drop in the past three months.
Despite strong backing from financial giants like JPMorgan Asset Management, Alibaba Group, and quantitative firms like Jane Street, the Dongshan listing witnessed weak investor demand, underscoring the fragility of market sentiment amidst prevailing uncertainties.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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