Sinoref and Chaowei debuts underperform amid sagging markets

Two newly listed companies, Sinoref Holding and Chaowei Power Holdings, fell below their initial public offering prices yesterday in another sign that sagging markets and a lack of confidence in the global economy are hurting listings.

Shares of battery maker Chaowei Power closed at HK$1.98, down 9.2 per cent from its offer price of HK$2.18, while shares of steel product producer Sinoref declined to 71 HK cents, or 6.5 per cent below its offer price of 76 HK cents.

The Hang Seng Index yesterday dropped 227.05 points or 1.13 per cent to close at 19,857.07 points.

Investors were not surprised at the poor debuts considering the global economic uncertainty and the market's reaction to Beijing's economic cooling measures.

Analysts said the debut of Agricultural Bank of China on the market next week would be another test of how the markets will react to the listing of such a large company.

So far, the bank's reception from retail investors is below expectations, according to brokers offering pre-listing booking for margin financing.

However, Agricultural Bank, the worst-performing bank among the country's Big Four - which also include Industrial and Commercial Bank of China, Bank of China and China Construction Bank Corp - has attracted strong interest from institutional investors.