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These Asia stocks have fallen sharply since their 2021 IPOs, fading from their first day surges


MongiIG

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Some 2021 Asia-Pacific IPOs have seen a sharp reversal in their fortunes since their strong market debuts.

At the top of the list is Chinese short video company and Tiktok-rival Kuaishou, which more than doubled from its issue price during its February debut. It was the only Asia listing among this year’s top five largest IPOs globally by deal size, according to Morningstar.

 

As of Wednesday’s market close in Hong Kong, however, the stock sat 77% below those first day gains.

Elsewhere, shares of Indonesian e-commerce firm Bukalapak have also tumbled hard after rising almost 25% on day one of trading. The stock is now 57% below those levels, as of Wednesday’s close.

Another Chinese stock that has plunged from its debut gains is JD Logistics, which raised more than $3 billion in its IPO. The stock was 36% below its first day closing price, based on its Wednesday close.

Those losses follow a number of issues including Beijing’s ongoing crackdown on China’s tech sector, which led to giants like Alibaba and Meituan being slapped with massive fines.

U.S. Treasury yields have also risen as the Federal Reserve signals it will soon begin to normalize monetary policy. Under such conditions, investors tend to avoid stocks in sectors like tech. These stocks could be hurt by rising rates which affect a company’s ability to fund growth and also makes future cash flows less valuable.

 

The fast-spreading omicron Covid variant has also further weighed on investor sentiment in recent weeks and dampened risk appetite, with questions remaining over the new strain’s potential economic impact. Full story on CNBC

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