Everyone knows that I have been pessimistic about Hong Kong stocks in the past two months. Hong Kong stocks have dropped by 6,500 points since this year’s high, they have not been able to bottom out. The main reasons are the trade war, the emerging market currency crisis and the domestic economy is not optimistic, these are relatively macro views.
In addition, everyone should also pay attention to the recent large-scale IPOs to raise funds frequently, which is also unfavorable for Hong Kong stocks. The medium and large-scale IPOs listed in August include ASCLETIS-B (01672), HOPE EDU (01765), BEIGENE-B (06160) and CHINA TOWER (00788), raising 3 billion, 3 billion, 6.8 billion, 580 billion respectively, total amount is 700 billion.
In September, large new stocks have come, including the MEITUAN DIANPING (03690) which is in the process of raising funds, to raise up to 34 billion yuan; Haidilao will raise shares in the short term, and plans to raise up to 1 billion US dollars (HK$7.8 billion) and has passed Huaxing Capital of the company intends to raise US$300 million (HK$23.5-31.4 billion), but the IPOs of these three companies have raised a total of up to HK$45 billion, which has drained market funds and worsened the recent weak Hong Kong stocks!
These large new stocks were listed when the market was weak, but the valuation was still expensive. I really don’t understand why there are still so many free loans, and all of them fell below the offer price after the listing. If you are optimistic about the prospects of these new shares, it would be better to wait for the opportunity to fall below the offer price after listing.