Fosun Pharma closes 8% lower on HK debut

Shanghai Fosun Pharmaceutical’s (2196.HKG, 600196.SH) share price closed at HK$10.84 on its debut on the Hong Kong Stock Exchange on Tuesday, falling 8% from its IPO price of HK$11.80, The Wall Street Journal reported. The drop was far larger than the 0.4% fall in the benchmark Hang Seng Index for that day. Fosun Pharma raised US$512 million in its offering, the largest IPO in Hong Kong since July. The first day drop indicates investor interest in new shares is still low and bodes ill for companies that plan to float shares on the market. These include People’s Insurance Company of China which is planning to gauge investor interest in November for a listing worth up to US$4 billion, Chinalco Mining’s planned US$1 billion issuance and Zhengzhou Coal Mining Machinery Group aim of raising US$500 million. Most new listings in Hong Kong this year and last year have underperformed the Hang Seng Index.