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Amanda Lee

Peak Sport Products, a Chinese maker of sports shoes, dropped 17.1 per cent  below its HK$4.10 offer price on its first day of trading yesterday, the biggest fall for a debut this year.
The stock opened at HK$3.70 but closed at HK$3.40.  
However, China South City Holdings, the owner of the largest industrial materials procurement complex in southern China, which is due to begin trading this morning on the Hong Kong stock exchange, was expected to do worse. 
Its shares traded at 30.5 per cent below their offer price of HK$2.10 yesterday in the grey market.
The pre-initial public offering highest and lowest trading prices for China South City on Phillip Securities' automated electronic platform for trading pre-flotation shares were HK$1.80 and HK$1.44.
Peak Sport is the latest company to sell off on its first day of trading, after China Lilang, a menswear brand, and state-owned engineering and construction contractor Metallurgical Corp of China. Both stocks  were still trading below their offer prices yesterday. 
Mainland sportswear producers such as Li Ning and Anta Sports Products have flocked to Hong Kong to list after enjoying double-digit sales growth over recent years, although analysts said rapid revenue growth was unlikely to continue.
Future sales growth would be in low-tier mainland cities, where top sportswear brands would focus on making their retail networks more efficient, said Sarah Xing, an analyst at Bank of China Group Investment.  
'China's retail market for sportswear is still growing,' said Xing. 'Earnings growth will be about 15 per cent.'
Peak Sport has sponsorship deals with National Basketball Association teams and players and plans to increase its sales networks overseas.
The company launched new footwear and apparel production plants last year in Jiangxi and Fujian provinces but said these two plants were unlikely to operate at full capacity in the short term. 
Peak Sport had a longer history of producing sportswear products than 361 Degrees International but was not a particularly strong brand, analysts said. 
The company is targeting the same overseas market as Anta Sports, including sponsoring players on the NBA's Houston Rockets, which Yao Ming plays for. Peak Sport sponsors Rockets players Shane Battier and Jason Kidd, while Anta has deals with the team's Luis Scola. 
Separately, Shanghai-based Yingde Gases Group's offering, which was due to close today, was oversubscribed 35 times, according to people involved in the deal.
The Chinese press also reported yesterday that the Hong Kong  bourse is considering applications from five mainland property firms: Evergrande Real Estate Group, Mingfa Group, Excellence Group, Fantasia Holdings Group and Xiamen Yuzhou Group. The companies aim to raise a total of at least HK$30 billion.



Peak Sport falls 17pc in worst debut this year