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Deb Price

Daniel Ren

Good day, traders.
The Hang Seng Index slipped 0.3 per cent while the Shanghai Composite Index eked out a small gain. Uncertainty about what's ahead for protests in the city and signs of progress in trade talks drove sentiment.
Catch up on the action below.
Please help us improve our blog by taking this quick -- under 2 minutes! -- survey. Your feedback will really help us make the blog better for you!
Also, if you would like the Live Stocks Blog emailed to you each morning, click here. 
-- Deb Price in Hong Kong and Daniel Ren in Shanghai 
Note: Information in this blog is on an "as is" basis and not a solicitation or offer to buy or sell any securities or otherwise; and is not investment/professional advice or services in this regard.  It is subject to our T&C.  SCMP (as defined in T&C) shall not be liable for any loss, damage and costs relating to any investments in securities or otherwise in this connection.


Hang Seng Index closes down, as local political uncertainty offsets optimism in US-China trade detente

The bull sculpture at the Hong Kong Exchanges and Clearing. Photo: SCMP 

The banging of the gong to mark the debut of Alibaba on the Hong Kong board. Photo: Winson Wong 

Alibaba (9988 HK) began trading this morning. Here Alibaba mascots await the banging of the gong.  Photo: Enoch Yiu 

Business

Markets

Top US-China trade negotiators talk on phone about partial trade deal
Pro-democracy sweep puts Hong Kong on likely collision course with Beijing, says analyst Brock Silvers


Top US-China trade negotiators talk on phone about partial trade deal. Meanwhile, Hong Kong leader Carrie Lam offers no concessions but acknowledges voters sent message of ‘unhappiness’ with government. 


Stocks

China stock market

Hang Seng Index

Alibaba

Tencent

Hong Kong protests

Hong Kong property

Live

Mainland China on Monday tried to brush aside the landslide defeat for the pro-establishment camp in Hong Kong’s district council elections, with news of the results on the mainland being heavily censored.
State media preferred to focus on calls for law and order to be preserved and the accusation that Western countries had been instigating unrest.
The pro-democracy camp took control of 17 out of 18 local district councils.
“In the past five months, violent rioters who wanted to turn Hong Kong upside down have colluded with foreign forces … non-stop social unrest has seriously disrupted the election process, and some troublemakers have harassed individual patriotic candidates on the election day,” Xinhua state news agency stated, without reporting the results.
“At present, putting an end to the violence and restoring order remain the paramount tasks of Hong Kong.”
Read full story by William Zheng and Echo Xie here.   


China tries to brush off pro-democracy victory in Hong Kong, blames ‘foreign forces’ 

China’s onshore money managers are among the biggest new investors in Alibaba Group Holding’s US$12.9 billion stock offering, making them a ready source of capital for technology peers contemplating a secondary listing in Hong Kong.
About one-third of the tranche allocated to international buyers was taken up by first-time mainland Chinese investors, a company official said, while the rest was absorbed by investors in the Asia-Pacific region and global funds.
“The global offering in Hong Kong was very successful, with a wide range of investors buying the shares. We see two groups of investors as a buying force in the international offering,” Alibaba’s chief financial officer Maggie Wu said in an interview. “They are mainland institutional investors and fund houses, and large global investors including from the Asia-Pacific region. Many of these shareholders also took the opportunity to increase their holdings.”
Read full story by Enoch Yiu and Peggy Sito here.


China’s onshore funds emerge as ‘buying force’ in Alibaba’s Hong Kong IPO

Kasen  International Holdings (496 HK), the Chinese furniture and leather maker who has been on a wild ride since being targeted by short-seller Blue Orca last Thursday, is moving to set up an independent reviewer to look into the claims, it said in a stock exchange filing.
Kasen called the claims of wrongdoing “inaccurate and misleading.”
The independent reviewer will look at the Blue Orca allegations, report to Kasen’s board on findings and make recommendations on “appropriate actions to be taken, if any.”
On Monday, Kasen soared 52 per cent to HK$4.  The stock shot up 478 per cent on Friday after rebutting the short seller’s claims. The stock had plunged 90 per cent on the short-seller’s attack last Thursday, when trading was halted before the lunch break.
-- Deb Price    


Kasen to set up independent review board to look into short seller’s claims

Overnight markets/ What futures foretell
--The S&P 500 climbed 0.8 per cent, the Nasdaq rose 1.3 per cent and the Dow Jones Industrial Average rose 0.7 per cent. 
-- Hong Kong futures rose 0.2 per cent, and the FTSE China A50 futures rose 0.3 per cent
IPO debuts: In Hong Kong, Alibaba (9988 HK). On mainland, China Zheshang Bank (601916 CH)  
Economic statistics/Central Bank action: Hong Kong trade data for October
Earnings: Sino Biopharmaceutical (1177 HK)   


Morning guidance 

Shares of Alibaba (9988 HK) in the pre-trade grey market offered by some brokers rose 5 per cent to HK$184.7, from the HK$176 offer price.
Official trading of the Chinese e-commerce giant will start at 9:30.
Financial Secretary Paul Chan Mo-po is at the listing ceremony together with former chief executive Tung Chee-hwa, who is an independent director of Alibaba, and HKEX Chairwoman Laura Cha Shih May-lung.
Alibaba founder Jack Ma is not at the event, but he appeared in a corporate video shown ahead of the gong ceremony during which he laid out the corporate values and mission of Alibaba to support customers to achieve their dreams and to create jobs.
Chairman and chief executive Daniel Zhang Yong, executive vice-chairman Joe Tsai and chief financial officer Maggie Wu are here to host the ceremony.
 
-- Enoch Yiu 


Alibaba rises in pre-trade grey market

The Hang Seng Index rose 0.6 cent to 27,161.31 , with 24 of the 50 constituent stocks posting gains.
Alibaba (9988 HK) began trading, opening at HK$187 in a secondary listing, from an initial public offering price of HK$176, or a 6.3 per cent premium.
Social media giant Tencent (700 HK)  rose 0.9 per cent.
Mengniu Dairy (2319 HK) rose 1.5 per cent to HK$30.10.
-- Deb Price    


Alibaba shoots up in trading debut; Hang Seng rising

China e-commerce titan Alibaba (9988 HK) debuted at HK$187 in its secondary listing in Hong Kong, from an initial public offering price of HK$176, or a 6.3 per cent premium.
It continued to rise and was last at HK$188.40.
The mega IPO, which attracted 200,000 retail applications, raised HK$101.2 billion in its secondary listing by selling up to 575 million new shares at HK$176 each. (Read full story here.) 
The debut is the world’s largest this year. Alibaba, the owner of the South China Morning Post, listed on the New York Stock Exchange five years ago, with its IPO reaching a worldwide record at US$25 billion.
It chose its stock code carefully. It rhymes with “prosperity forever,” and the numbers eight and nine are considered auspicious in both Cantonese and Mandarin Chinese.
Alibaba, in a stock exchange filing, said it plans to used the funds raised in its secondary listing for “implementation of our strategies to drive user growth and engagement, empower businesses to facilitate digital transformation and improve operational efficiency, and continue to innovate.”   
Alibaba (9988 HK) started trading on Hong Kong stock exchange today. It is the most crowded day at HKEX in a month. @scmpbusiness @SCMPNews pic.twitter.com/n3tRgYulYx
  — Snow Xia (@SnowXia05) November 26, 2019
-- Deb Price and Snow Xie 


Alibaba continues to rise 

Grand China Air, parent of Hainan Airlines Holding (600221 CH), is said to have missed repayment of a 1 billion yuan bond that expired on Monday.
According to 21st Century Business Herald, the Hainan province-based company failed to repay both principal and interest to investors and requested to extend the bond maturity.
The three-year bond issued on the mainland’s interbank market carried an interest rate of 6 per cent.
Grand China is a subsidiary of HNA Group, a free-wheeling Chinese buyer that was put under heightened scrutiny by mainland regulators beginning in  2017 due to its high leverage ratio.
-- Daniel Ren


China Grand Air reportedly misses bond repayment

The Shanghai Composite Index inched up 0.1 per cent to 2,910.
The Industrial and Commercial Bank of China (601398 CH) rose 0.3 per cent to 5.85 yuan, while Kweichow Moutai (600519 CH) climbed nearly 1 per cent to 1,193.29.
Among mainland stocks in additional to Kweichow Moutai that heavily traded by northbound investors:
-- Jiangsu Hengrui Medicine (600276 CH)  rose 1.4 per cent to 89.36.
-- Ping An Insurance (601318 CH) rose 0.1 per cent to 85.62 yuan.
-- Deb Price  


Shanghai Composite rises, with nearly 1 per cent increase for Kweichow Moutai

Shares of cancer drugs developer BeiGene  (6160 HK) fell as much as 1 per cent after it announced preliminary results on its 30-patient phase 2 clinical trial for an PD-1 antibody biological drug called tislelizumab, in combination with chemotherapy on patients with cancers in the stomach or esophagus.
Its chief medical officer for immuno-ongcology Ben Yong said the treatment demonstrated "durable responses" and was "generally well-tolerated".
Seven, or 46.7 per cent of each of two groups of 15 patients have shown partial positive response to the treatment, and the average progression-free survival period of the two groups was 6.1 months and 10.4 months.
Adverse effects from the treatment were "consistent with the known tolerability profile" of other PD-1 drugs combined with chemotherapy.
The stock traded 0.6 per cent lower at HK$125.5, against a 0.2 per cent gain of the Hang Seng Index.
-- Eric Ng


BeiGene falls after announcing results on cancer drug

China Zheshang Bank (601916) jumped 10.3 per cent to 5.45 yuan in the morning after making its trading debut at the Shanghai Stock Exchange.
The Hangzhou-based commercial bank, which raised 12.6 billion yuan at 4.94 yuan a piece in a Shanghai share offering, opened at 4.95 yuan, nearly unchanged from its offering price of 4.94 yuan.
Mainland IPO debutants normally surge at least 30 per cent on the first trading day.
Zheshang’s A shares are now trading at a 39 per cent premium to its H shares which slid 0.7 per cent to HK$4.36 in morning trade.
-- Daniel Ren


Zheshang Bank jumps 10.3 per cent in trading debut

Kasen  International Holdings (496 HK), the Chinese furniture and leather maker who has been on a wild ride since being targeted by short-seller Blue Orca last Thursday, shot up at the opening but slid back to last trade up 2 per cent at HK$4.08. 
On Monday, Kasen soared 52 per cent to HK$4.  
The stock shot up 478 per cent on Friday after rebutting a short seller’s claims. The stock had plunged 90 per cent on the short-seller’s attack last Thursday, when trading was halted before the lunch break.
It now says it is setting up an independent review of the short seller’s claims, which it has called “inaccurate and misleading.”
-- Deb Price    


Kasen International shoots up but sliding back as rollercoaster ride continues

ArtGo Holdings (3313 HK) jumped 13.1 per cent to 69 HK cents.
The share price of the Chinese marble producer has been wild since after the MSCI reversed its initial plan to include the stock in its indexes citing concerns about its “investibility.” 
It dropped nearly 98 per cent on Thursday following the announcement.
On Friday, it slid another 8.2 per cent.
Monday, it shot up nearly 118 per cent.
-- Deb Price    


ArtGo jumps as wild ride continues 

Top property stocks including New World Development (17 HK) and Wharf REIC (1997 HK)  are falling, after seeing gains Monday following the election sweep by pro-democracy candidates.
New World fell 1.7 per cent to HK10.36, while Wharf declined 1.1 per cent to HK$44.25.
Meanwhile, China Mengniu Dairy (2319 HK), a leading dairy producer in China, rose 2 per cent to HK$30.25 after it announced Monday it is buying a second popular dairy producer in Australia.
Mengnui is buying Lion Dairy & Drinks for US$419 million, following its announcement in September that it will buy infant formula maker Bellamy’s for US$1 billion.
Read full story on Mengnui’s expansion abroad here. 
-- Deb Price     


Property stocks fall while China Mengniu rises on latest plan to buy Australian drink maker

The Hang Seng Index has reversed and is now down 0.1 per cent to 26,972.11, slipping back below 27,000 which it had breached in early trading.
Tencent (700 HK) fell 0.4 per cent to HK$337.40.
Meanwhile, new face Alibaba (9988 HK) is now trading at HK$188, or 6.8 per cent above its initial price offering.
-- Deb Price    


Heng Seng reverses, now posting small loss

Electronics firm Tunghsu Optoelectronic Technology (000413 CH) is expected to default on another bond worth 1.7 billion yuan after it failed to repay principal and interest worth over 2 billion yuan last week.
Shanghai Clearing House issued a warning on Monday that the company, mired in a liquidity crunch, might not be able to repay the 1.7 billion yuan debts.
Tunghsu said in an exchange filing on Monday evening that its parent had reached a preliminary agreement with the state-owned asset watchdog in the northern city of Zhijiazhuang to hand over a majority stake of 51.5 per cent in the listed unit, the country's largest producer of photoelectric display materials.
Trading of Tunghsu shares has been suspended since November 19.
-- Daniel Ren


Tunghsu Optoelectronic to default on second bond

Traders drew the wrong conclusion Monday about the impact of the pro-democracy sweep, with excitement boosting the Hang Seng Index up 1.5 per cent, says Brock Silvers, managing director of Adamas Asset Management.
“The market initially drew the wrong lessons from this weekend’s astonishing election.  Pro-Democratic gains have likely put Hong Kong on a collision course with Beijing, and further social unrest may be expected,” he said.  “Which of course won’t be a positive for the market.”
The Hang Seng Index is seesawing in the morning session and was last down 0.02 per cent to 26,986.73.
Meanwhile, Silvers says Alibaba (9988 HK) is an “interesting long-term proposition. 
“Alibaba enjoyed a very solid open.  But that’s mostly a reflection of the company itself,” Silvers said.  “Alibaba remains an interesting long-term proposition, which is why there was so much support for the listing.”
Alibaba is trading at HK$188, or a gain  of 6.8 per cent from its initial price offering of HK$176.
-- Deb Price     


Pro-democracy sweep puts Hong Kong on likely collision course with Beijing, says analyst  Brock Silvers

The Hang Seng Index is seeing some profit taking, with traders not expecting more positive catalysts coming soon, but the downside risk is “mild,” said Alan Li, portfolio manager at Atta Capital.
“After such a peaceful election, the whole society is calming down,” Li said. “There’s a golden opportunity for the government to settle the conflict. The market still has patience to wait and see.”
Anti-government protesters are trying to figure out their next steps after the pro-democracy camp pulled off a stunning victory. The protesters have five demands, only one of which -- the formal withdrawal of an extradition bill -- has been met. 
City leader Carrie Lam said Monday the government “will definitely listen humbly and reflect on the people’s opinion.” But Beijing’s reaction has been dismissive, and focused on the need to restore order in the former British colony that has been roiled by protests for more than five months.
On Alibaba’s debut, Li said it did as well as expected, with “satisfactory” turnover.
“People are waiting for Baba to enter the Stock Connect and the major local index,” he said.
Alibaba isn’t expected to be able to join the Hang Seng or be available for mainland traders until sometime next year.
-- Deb Price    


Traders in ‘wait and see’ mode on steps by government after pro-democracy election sweep, says analyst Alan Li

Fund managers expect fresh inflows of nearly US$7 billion into Chinese equities from global investors after index complier MSCI lifts the weighting of A shares in its benchmark gauges for the third time this year.
“It is more than just a fresh influx of capital,” said Shen Ye, a Shanghai-based hedge fund manager. “The move by MSCI to continuously raise the weighting of Chinese shares means the stocks here have long-term growth prospects and are worth buying.”
BlackRock, the world’s largest asset manager with US$6.84 trillion in assets under management, predicts that the upcoming adjustment by MSCI will help A shares draw passive fund inflows of US$6.7 billion.
China International Capital Corp, one of the mainland’s leading investment banks, is more upbeat, expecting overall capital inflow of up to US$40 billion from both passive and active funds.
Read full story by Daniel Ren here. 


Fund managers expect inflows of US$7 billion as MSCI A share weighting gets boost 

A raft of listed subsidiaries by the mainland’s two largest state-owned shipbuilders led gains on the A-share market in morning trade after Beijing announced a mega-merger deal between the two juggernauts.
The State Council said in the morning that Beijing decided to create a new shipbuilding giant by merging China State Shipbuilding Corp. and China Shipbuilding Industry Corp. to improve manufacturing and management efficiency.
China State Shipbuilding (600150 CH) advanced 4.3 per cent to 20.39 yuan in morning trading session.
CSSC Offshore & Marine Engineering Group (600685 CH) gained 2.5 per cent to 15.02 yuan.
The benchmark Shanghai Composite Index slipped 0.1 per cent to 2,906.08.
-- Daniel Ren


Shipbuilding stocks rise on mega merger deal

The Hang Seng Index will start afternoon trading with losses, slipping 0.1 per cent to 26,966.39 at the lunch break. Of the 50 constituent stocks, 30 posted gains. 
The property sub index fell 0.8 per cent, after being the top percentage gainer on Monday. 
The stock in the spotlight is of course Alibaba (9988 HK), which gained 6.8 per cent to HK$188.10 from its initial public offering price of HK$176. But it has barely budged from its opening price of HK$187.
Chinese rival Tencent (700 HK) fell 0.5 per cent to HK$337.20.
Mengniu Dairy (2319 HK) rose 2.4 per cent to HK$30.35, after announcing plans for its second purchase of an Australian dairy company.    
-- Deb Price 


Alibaba, Mengniu gain, while Tencent falls

Top trade negotiators from China and the United States held a telephone conversation on Tuesday morning, discussing their core concerns and agreeing to maintain communication on a potential interim trade agreement, China’s commerce ministry said.
Liu He, China’s Vice-Premier and lead negotiator in the trade talks, and the US’ Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, “discussed how to address respective core concerns, reached consensus on solving related problems, and agreed to keep communication for the remaining matters in the ‘phase one’ trade negotiations”, the ministry said in a statement.
Liu had last talked to his US counterparts 10 days earlier, when they had “constructive discussions” on core issues, according to China’s official media reports.
Global Times, a nationalist tabloid published under the auspices of Communist Party mouthpiece People’s Daily, reported on Monday that the two countries were “moving closer” to agreement on a phase one trade deal. Among the details being discussed was the issue of removal of tariffs.
Read full story by Wendy Wu here. 


Top US-China trade negotiators talk on phone about partial trade deal

Embattled Hong Kong leader Carrie Lam acknowledged that Sunday’s elections had a “more political dimension” and sent a message of “unhappiness” about “deficiencies” in the government and its handling of social unrest roiling the city, but offered no concessions.
When asked directly by a reporter today whether it was time to offer concessions to anti-government protesters rather than risk a return to perhaps even worse violence, she offered no concessions. 
“The next step to go forward is really, as you have put it, to engage the people, and we have started public dialogue with the community,” she said.
“But unfortunately, with the unstable environment and a chaotic situation, I could not do more on that sort of engagement. I hope that the environment will allow me to do it now.”
Her news conference weighed on trading sentiment. The Hang Seng Index is trading down 0.1 per cent to 26,962.71, a reversal from a gain in early morning trading.
-- Deb Price 


Leader Carrie Lam offers no concessions but acknowledges voters sent message of ‘unhappiness’ with government

Cosmetics retailer Sa Sa international Holdings (178 HK) has lost 1.6 per ent to HK$1.81, as Monday’s market hopes fade that protest violence would wane following Sunday’s elections.
On Monday, Sa Sa gained 5.7 per cent, as the Hang Seng Index rose 1.5 per cent.
Meanwhile, Wharf REIC (1997 HK), which like Sa Sa has seen its share price battered as the protests drove away all-important mainland Chinese tourists, has lost 1.8 per cent to HK$43.95 in afternoon trading. 
On Monday,  Wharf REIC, which owns such shopping malls as Harbour City and Times Square, shot up 4.7 per cent to HK$44.5.
-- Deb Price      


Sa Sa, Wharf REIC fall as hopes diminish for end to violent protests

Shares of China Zheshang Bank (601916) fell, trading at 5 yuan, just 1.2 per cent higher than its offering price of 4.94 yuan.
The Hangzhou-based lender, one of the mainland’s 12 joint-stock commercial banks, jumped 10.3 per cent to 5.45 yuan in morning trading after making its debut on the Shanghai Stock Exchange.
Its first-day gain turned out to be much smaller than market average as most of mainland-listed companies climbed at least 30 per cent when trading started.
Its A shares are now still 30 per cent more expensive than its H shares which shed 2.5 per cent to HK$4.28 in afternoon trading.
-- Daniel Ren


Zheshang Bank gives up much of its gains from debut 

Jiangsu province-based escalator maker Canny Elevator (002367 CH) saw its shares tumble 4.6 per cent to 6.85 yuan in the afternoon as it faced potential loss of 79 million yuan from the investment into a wealth management product.
The company said on Monday evening that Shanghai Hualin Assets might not be able to pay back its investment of 79 million yuan into a wealth management product, which could hurt Canny’s earnings and operations.
Shares tumbled as much as 9.1 per cent to hit intraday low of 6.56 yuan in the morning, before rebounding 4.4 per cent to 6.85 yuan.
-- Daniel Ren


Esacalator maker faces loss from wealth management product

The trade war and China’s economic data continue to be driving market sentiment, far more than concerns about the Hong Kong protests, says Kenny Wen, wealth management strategist at Everbright Sun Hung Kai.
“The trade war and Chinese economic data are driving sentiment. The social unrest may impact specific stocks. Hang Seng Index heavyweights like Tencent and Chinese banks their businesses aren’t directly affected by the Hong Kong economy,” Wen says.
The Hang Seng Index continues to find the 27,000-point level a key resistance.
“Some investors will not chase the rally given this resistance level of 27,000. Some investors choose to lock in profits. The resistance levels of 27,000 and 27,4000, I don’t expect those to be broken through easily,” Wen said.
Alibaba (9988 HK), last up 6.7 per cent to HK$187.80 from its initial public offering price, had a solid debut, he said, given that it is a secondary listing for a stock that has traded in the US for five years. He sees it gaining when it is added to the Stock Connect trading link.
 

-- Deb Price 


Trade war, China economic data driving market sentiment, not protests, says analyst Kenny Wen

The Shanghai Composite Index eked out a small gain, rising by 0.03 per cent to 2,907.06, as the benchmark continues to trade in a narrow band.
The CSI 300 Index of large caps traded in Shanghai and Shenzhen rose 0.4 per cent to 3,891.65.
The Industrial and Commercial Bank of China (601398 CH) rose 0.3 per cent to 5.85 yuan, while Kweichow Moutai (600519 CH) see-sawed before ending up 0.3 per cent to 1,185 yuan.
Among mainland stocks in additional to Kweichow Moutai that are heavily traded by northbound investors:
-- Jiangsu Hengrui Medicine (600276 CH)  rose 0.9 per cent to 88.90.
-- Ping An Insurance (601318 CH) slipped  0.1 per cent to 85.40 yuan.
Among sectors, wireless headsets gained, with a gauge tracking 38 related stocks climbing 1.8 per cent. Apple AirPod supplier Luxshare Precision (002475 HK) rose 2.6 per cent to 33.30 yuan. (Here is a feature for investors on this fast-growing sector in China.)
Steel and cement stocks, which rallied Monday, saw losses. Gauges showed steel stocks fell 3 per cent while cement stocks dropped 1.8 per cent.   
Anyang Iron and Steel (600569 CH), which hit the 10 per cent upside limit Monday, fell 4.2 per cent to 2.51 yuan. Huaxin Cement (600801 CH) fell 2.4 per cent to 21.91 yuan after its 10 per cent gain Monday.
-- Deb Price 


China stocks post small gains, with Kweichow Moutai and wireless headsets rising

The Hang Seng Index slipped 0.3 per cent to 26,913.92, snapping a two session winning streak as concerns about protests starting again outweighed signs of progress toward a partial trade deal between China and the US.
Property stocks were weighed down by renewed concerns protests will return after city leader Carrie Lam offered no concessions in a news conference after anti-government candidates swept the elections Sunday, said Ken Wong, equities portfolio manager at Eastspring Investments. 
Wharf REIC (1997 HK) fell 2.1 per cent to HK$43.80, while CK Asset Holdings  (1113 HK) slid 2.3 per cent to HK$52.45 and New World Development (17 HK) dropped 1.7 per cent to HK$10.36. 
China Mengniu Dairy (2319 HK) rose 3 per cent to HK$30.55, making it the benchmark’s top percentage gainer. It announced Monday that it will buy a second Australian dairy and drink maker -- Lion-Dairy and Drinks -- as part of its international expansion plans. In September, it said it would buy Australia baby milk formula maker  Bellamy’s for US$1 billion.
The market “wanted to ride the positive sentiment (after Sunday’s elections). But being down only 80 points today after seeing it rise by 530 last Friday and Monday is still not too bad of a minor pull back,” said Wong.
Tencent (700 HK) fell 0.9 per cent to HK$335.60.
Meanwhile, Alibaba (9988 HK) saw its shares rise 6.6 per cent to HK$187.60.
Wong called the performance “in line.“
Since January 1, 2017, the Hong Kong Exchanges and Clearing -- the stock market operator -- has had 550 IPOs and 313 of those IPOs gained on their first trading day and of those, 199 companies were up by more than 6.6 per cent on their first trading day, said Wong.
-- Deb Price     


Alibaba ends first day up 6.6 per cent; Hang Seng falls, snapping two session winning streak

A massive fund inflow from northbound trading via the Stock Connect ahead of the increase of A shares’ weight in the MSCI global benchmarks helped offset the heavy selling in steelmakers in mainland markets.
“International institutions raised their holdings in mainland mid-cap stocks after some of them were included in the MSCI indicators during afternoon trading,” said Zhou Ling, a hedge fund manager with Shanghai Shiva Investment. “The fresh capital influx gave investors confidence in market outlook.”
Index compiler MSCI raised the A-share inclusion factor from 15 to 20 per cent after market close on Tuesday, with 189 mid-cap mainland stocks picked as components in the benchmarks for the first time.
Shanghai and Shenzhen stock exchanges received net inflow of 21.4 billion yuan (US$3.04 billion) from northbound trading, setting an all-time high.
-- Daniel Ren 
