The lacklustre share market debut of Xiaomi this week in Hong Kong has cast a lengthy shadow over the listing prospects for other Chinese tech groups and the boom in private valuations enjoyed by the sector.
Xiaomi, which debuted at half the $100bn valuation it originally sought, illustrates the risks surrounding the great China tech boom. As companies enter the public realm, sky-high private valuations face a test. Some investors already have reservations about the prospects for Metuan-Dianping, which started life as a kind of Groupon, and ride-sharing service Didi Chuxing.
Among prospective listings are two lithium companies, Tianqi and Ganfeng, each seeking $1bn, Nio, an electric vehicle specialists, aiming for $2bn, Shanghai Tasty Pharmaceutical seeking $1bn, while WeLab, a financial tech outfit, hopes to raise $500m.