China's Citic securities falls 10% on Hong Kong debut

Hong Kong stock exchange The Hong Kong stock exchange has seen many proposed listings being cancelled or postponed

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Shares of Citic Securities have fallen on their debut at the Hong Kong stock exchange as market volatility continues to dent investor sentiment.

Its shares fell by as much as 10% in early trade to HK$11.90 from an offer price of HK$13.30.

Citic securities, China's largest listed brokerage had sold 995.3m shares raising HK$13.2bn ($1.7bn, £1.1bn).

Many Chinese firms have recently cancelled or postponed their proposed listing on the exchange.

"It is a very difficult time for any initial public offering (IPO) because market sentiment is so weak right now," said Patrick Yiu of CASH Asset Management.

No appetite?

Hong Kong stock exchange has witnessed sharp falls in recent days, with the Hang Seng index hitting a two-and-a-half year low on Tuesday.

Analysts said that given the uncertainty surrounding the global economy and the volatility in the stock markets, investors were being cautious.

"Investors want to look for stocks now with a track record, with very low valuations," said Mr Liu. "They don't have the appetite for new stocks."

The lack of investor confidence has seen listings worth some $4.5bn being cancelled or postponed.

Sany Heavy Industry Co has delayed the launch of the retail portion of its $3.3bn offering and also pushed back its listing date.

XCMG Construction Machinery Co, China's biggest crane maker also cancelled its proposed $1.1bn listing after some of the underwriters pulled out.

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