On March 31, Hangzhou Tong Master Culture Creative (Group) Co., Ltd. (Tong Master) debuted on the stock market in Hong Kong and immediately dropped below its IPO price, with the stock price falling by 50% at its lowest point during the trading session. Observers noted that since March, several stocks have been breaking their IPO prices, throwing a cold water on the recent hot Hong Kong IPO market. This news quickly became a hot topic on April 1.
According to the final announcement on the offering price and allocation results, Tong Master globally offered 7,406,800 H shares, with 1,111,000 H shares offered in Hong Kong (after reallocation) and 6,295,800 H shares offered internationally, priced at 60 Hong Kong dollars per share.
However, on the debut day of the IPO on March 31, the stock fell below the IPO price. Upon opening, Tong Master’s stock price was 35.42 Hong Kong dollars per share, a 40.97% discount from the IPO price. The price fluctuated slightly during the trading session and dropped nearly 50% from the issue price at its lowest point, closing at 30.50 Hong Kong dollars per share, marking a significant decrease of 49.17%.
This year, there have been 40 new listings in Hong Kong’s capital market, surpassing the number from the same period in 2025. With the increasing number of listed stocks, the occurrence of breaking issue price has also risen. Data from Wind showed that in March this year, out of the 15 newly listed stocks, including Eston, Youlesai Sharing, Zejing Shares, and Tong Master, four experienced price drops on their debut day, bringing the breaking rate to 26.67%.
Regarding the growing probability of IPOs breaking their issue prices in March, an analysis by Yuan Mei, the director of investment research at Sullivan Jeally (Shenzhen) Cloud Technology Co., quoted by the “Winning Daily” on March 31, mentioned that the increase in IPOs breaking the issue price in Hong Kong is mainly due to the energy crisis triggered by geopolitical conflicts, leading to pressure on risky assets.
Wen Tiannan, the CEO of Boda Capital International, believes that the rise in breaking issue prices of new stocks in the Hong Kong market is actually a self-adjustment of the market. Compared to A-shares, Hong Kong investors pay more attention to discounted cash flow, dividend returns, and liquidity. Some companies did not fully consider the differences in risk preferences in pricing, resulting in post-listing adjustments.
However, many internet users had more direct opinions on this matter. User “Winter Winds Drifting” commented, “Those being trapped are of no investment value. Investors’ eyes are sharp.”
“Little Water No. 1” remarked, “The industry is not doing well. Selling copper products when copper prices are high leads to high costs and selling prices, resulting in lower revenue and no investment value.”
In an environment where the rate of breaking issue prices is rising, Wen Tiannan advised investors to focus on industry leaders (especially in AI/high-end manufacturing/new economy) and reasonably discounted AH shares. It is suggested to avoid stocks with overvalued estimates, average fundamentals, or no clear catalysts.
Established on March 26, 2013, Hangzhou Tong Master Culture Creative (Group) Co., Ltd. is based in Jiande, Zhejiang Province. The company’s main business is copper art and craft products, holding a market share of 35.0% in the Chinese copper art and craft products market in 2024.
In China, Tong Master is known as the “PapaMart for middle-aged people.”