NEWLY listed companies on the Hong Kong stock exchange are expected to become Asia’s worst performers this year, Bloomberg reported Tuesday.

Firms that went public in Hong Kong after initial public offerings (IPOs) of at least US$100 million are down almost 20 percent on average from their IPO prices, according to data that Bloomberg has compiled.

The disappointing performance of those Hong Kong-listed firms compares with gains of 40 percent in South Korea, 32 percent in India and 86 percent on the Chinese mainland, where new stocks often climb due to tight approval IPO systems based on informal upper limits on valuations.

Hong Kong’s IPO market has cooled since the initial frenzy driven by cheap funding and ample cash. While first-half proceeds surged 130 percent on a yearly comparison, the following months were marked by an almost complete absence of major deals.

Some major tech names that initially did well after listing early in the year lost altitude. Kuaishou Technology, which debuted in February, almost doubled in value by June, only to erase gains and slump 30 percent since listing.

About 75 percent of the 59 companies that began trading in Hong Kong since January are poised to finish the year lower than their IPO price. Equivalent percentages are 34 percent in India and 28 percent in South Korea, Bloomberg said.

Companies that are in line with China’s new economy are bucking the trend.

Electric vehicle makers Li Auto Inc. and XPeng Inc. are up more than 3 percent and 6 percent, respectively, since listing in the second half. Biotech names including Brii Bioscience Ltd. and Medlive Technology have climbed more than 30 percent.

(SD-Agencies)