Imeik slumps 15pc amid broad sell-offFinance | Avery Chen 27 Jul 2021
Shares of mainland biomedical product maker Imeik Technology Development, which is gearing for a Hong Kong secondary listing, slumped 15 percent yesterday, as China's regulatory crackdown sparked a broad sell-off in the A-shares market.
Both the Shanghai Stock Exchange Composite Index and Shenzhen index slumped more than 2.2 percent yesterday. The medical beauty sector was one of the biggest losers as investors considered stocks in the high-end consumer market to be overvalued.
Imeik Technology closed 15.05 percent lower at 618.4 yuan (HK$741.47) yesterday. Its rivals Bloomage BioTechnology slumped 18.39 percent and Lancy dropped by 10 percent daily trade limits.
Imeik Technology plans to file an application to the Hong Kong stock exchange later this month or early next month, IFR Asia reported last week. The Shenzhen-listed firm is seeking to raise between US$2 billion (HK$15.6 billion) and US$3 billion, the report said.
Founded in 2004, the Beijing-based firm mainly produces biomedical soft tissue repair materials, such as skin fillers and facial implant threads.
Thanks to the rapid growth of China's beauty market, shares of Imeik Technology had jumped to an all-time high of 844.44 yuan last week, 5.8 times higher than its initial public offering price last December. But it had fallen 26.76 percent from the peak yesterday.
Meanwhile, Chinese electric car maker Li Auto passed a listing hearing with Hong Kong stock exchange yesterday, an exchange listing document showed. The Nasdaq-listed firm is reportedly seeking to raise US$1 billion to US$2 billion, Bloomberg reported.
Its major domestic competitor Xpeng raised HK$14 billion from a dual-primary listing in Hong Kong earlier this month. Nio, traded on the New York Stock Exchange, is also considering a Hong Kong share sales.
That came as China revealed new rules that require all companies to undergo cyber-security reviews before seeking to list in foreign countries.
And the music streaming arm of Chinese gaming giant NetEase (9999) is seeking listing approval as soon as this week, local media reported, although its biggest rival Tencent Music Entertainment was fined 500,000 yuan and asked to give up all exclusive rights by Chinese anti-trust regulators.
Cloud Village, known as Netease Cloud Music, could raise about US$1 billion from the Hong Kong IPO, Bloomberg reported in May.
In other news, mainland developer Fantasia (1777) is considering spinning off its business of property management to list in Hong Kong.