Hong Kong becomes popular market to launch tech IPOs from the mainland

Eight firms, including several Chinese tech start-ups, started trading in the Hong Kong market today, cementing the city as a destination for technology initial public offerings.

The firms include Inke, a live streaming service provider, Qeeka an online home decoration platform and game developer Zhijian-Yd.

Inke, which has grown quickly during China’s live streaming frenzy since 2016, closed at HK$4.65 (59 US cents) in its first trading day today, up 10.65 percent from the IPO price. Qeeka, however, tumbled 6.39 percent to close at HK$4.54 today.

On Monday, Xiaomi become the first listed firm in Hong Kong to sell shares with a dual-class structure after the city changed listing rules to allow company founders to keep outsized voting rights.

Shares of Xiaomi, which was valued at US$54.3 billion in its IPO, fell 6 percent from its IPO price of HK$17 on its debut in Hong Kong on Monday. But Xiaomi  rebounded by 1.37 percent to close at HK$19.26 today.

Hong Kong is now a popular destination for technology IPOs from the mainland and in the past two years, the market has seen IPOs from online health care platform Ping An Good Doctor, game gadget vendor Razer, online car-financing provider Yixin Group and online finance payment service provider ChinaPnR.

Internet giant Meituan-Dianping, online education platform Hujiang and online housing platform E-House all have plans to list in Hong Kong.

Businesses in the “new economy” will continue to boost IPO activities on both the mainland and Hong Kong in the second half, EY said in a report in June.