On Wednesday, April 24th, the Chinese artificial intelligence company known as the “AIGC first stock,” Mobvoi, went public in Hong Kong. However, its stock price plummeted rapidly after opening, becoming the third stock on the Hong Kong Stock Exchange this week to drop over 20% on its debut.
Mobvoi’s stock opened at 2.98 Hong Kong dollars on April 24th, below its issuing price of 3.80 Hong Kong dollars, leading to a 21.58% decline. By the time of this report, the stock’s drop had narrowed to 3.68%, trading at 3.66 Hong Kong dollars per share, with a total market value of 5.459 billion Hong Kong dollars.
On Tuesday, the parent company of the tea drink brand “Chatime,” Sichuan Baike Tea Industry Co., Ltd. (referred to as “Chatime”), and the private construction conglomerate Tianjin Construction Development Group Co., Ltd. (referred to as “Tianjin Condev”) were officially listed on the main board of the Hong Kong Stock Exchange.
Chatime closed its debut day down by 27% at 12.80 Hong Kong dollars, while Tianjin Condev closed with a 39% decline at 1.52 Hong Kong dollars. The lackluster performance of these two stocks has further dimmed the outlook of what is already the worst-performing stock market in Asia this year.
Tai Hui, Chief Asia Pacific Market Strategist at J.P. Morgan Asset Management, expressed disappointment on Wednesday regarding the lackluster debut of mainland Chinese companies in the Hong Kong market, indicating a strong preference for safety in the market.
Mobvoi is an artificial intelligence company with a focus on generative AI and voice interaction. Early backers include tech investors such as Google.
According to a report from Goldman Sachs on Tuesday, Hong Kong’s stock market performance year-to-date is at -4.6% in USD terms, ranking at the bottom among Asian markets.
Martin Lau, Managing Partner of First Sentier Investors, responsible for investments in mainland China and Hong Kong stocks, conveyed a lack of confidence among foreign investors in both markets.
Lau stated, “The trading volume in the Hong Kong stock market is relatively low,” and added that many investors discuss Hong Kong as becoming a relic of its past as an international financial center.
Lau believes that investors are seeking companies with steady growth, low valuations, and dividend-paying potential before the Chinese economy enters a phase of “steady growth.”
During an interview with reporters on Wednesday morning, Tai Hui from J.P. Morgan Asset Management noted that the latest trend among investors is to allocate funds into “traditional, defensive industries, and high dividend” companies rather than those in the new economy sector.
(Reference from Nikkei News)