Retail investors pump $29b into NetEase IPO

NetEase, the Chinese second-largest online game developer, has attracted retail investors to place HK$29.1 billion orders for its Hong Kong secondary listing, equivalent 44 times shares initially available to them, within a day, according to local brokers.

The Nasdaq-listed company launched a Hong Kong initial public offering yesterday, that could raise as much as HK$21.61 billion. The institutional tranche of the IPO has been significantly oversubscribed, Bloomberg reported.

The IPO came amid intensified tension between the United States and China with the former moving a bill that aims to delist some Chinese companies from its stock exchanges.

Meanwhile, e-commerce operator Pinduoduo is planning a secondary listing in Hong Kong and has hired China International Capital Corporation (3908) to arrange the deal, aiming to submit an IPO application by the month-end, mainland media reported.

In other news, SMC Electric (2381), a mainland electric tools and electric fans exporter, saw its share price slump by 43.6 percent to HK$0.14 on its first trading day yesterday. And, Haina Intelligent Equipment International (1645), a mainland manufacturer of automated machines for making disposable hygiene products, fell more than 15 percent from its offer price of HK$1.38 in the gray markets last night.