Weak market sentiment hits HK listing

Shares in Shandong Chenming Paper Holdings Ltd fell nearly 17 percent in their market debut yesterday, in line with expectations, after it raised $410 million in a Hong Kong initial public offering.

Investors' appetite for new listings in Hong Kong remains weak amid volatile global markets and concern over rising inflation, with the benchmark Hang Seng Index down 4.9 percent in June and 16 percent so far this year.

"I am not surprised about the lacklustre trading debut for Chenming. Investors are skeptical on equity trading, especially IPOs, which are not a guaranteed investment anymore," said Ben Kwong, chief operating officer at KGI Asia.