China Minsheng Banking Corp yesterday became the first mainland Chinese bank to fall on its Hong Kong trading debut in a decade, after a glut of listings damped investor sentiment.
Analysts said the shares had been weighed down by wider concerns this week that Chinese lenders would have to raise tens of billions of dollars in fresh capital to meet regulatory requirements following an unprecedented expansion of new loans this year.
The listing of Minsheng, China's ninth-largest listed bank by assets and the first private lender, also suffered a setback last week when Hopu Investment Managementwithdrew its proposed $1bn investment in the initial public offering. People familiar with the matter said the Beijing-based fund felt that the offering was overpriced above HK$8.75, whereas the listing price was HK$9.08.