As the world’s second-largest economy, China is a key player in the global IPO market. This year especially: Chinese IPOs in the mainland and Hong Kong have raised 10x the US IPO market. China’s IPOs have raised roughly 20% more than every other country combined in 2022.
So Monday's -6.4% crash of the Hang Seng Index in Hong Kong should have repercussions for global IPO activity. Faced with a tech-unfriendly administration and recession fears, foreign investors threw in the towel, and the Hang Seng dropped to a 13-year low. Even the domestic Shanghai Index is nearing its YTD low.
A number of large deals in the Middle East look to trade in the coming weeks. The international IPO calendar also contains IPOs from India, China, South Korea, Indonesia, and Thailand.
The international IPO market underperformed this week, down -1.9% compared to the MSCI ACWI ex U.S. ETF up +1.6%. Naturally, this week's IPO losers were crowded with Chinese companies, and property manager China Resources Mixc Lifestyle Services appeared at the bottom, off -20.6%. Polish e-commerce platform Allegro.eu was the week's winner, up +12.2%.
Thanks for reading,
-Matt Kennedy, Senior Strategist
-Lily McGonagle, Data Analyst
|
Biggest price changes through
Oct 28th
in the
Renaissance International IPO Index
|
||
|---|---|---|
| Top 5 | ||
| Allegro.eu | ALE.PW | 12.2% |
| EQT | EQT.SS | 11.3% |
| AutoStore Holdings | AUTO.NO | 9.6% |
| Acciona Global Renewables | ANE.SM | 8.7% |
| Antin Infrastructure Partners | ANTIN.FP | 8.2% |
| Bottom 5 | ||
| China Resources Mixc Lifestyle Services | 1209.HK | -20.6% |
| Topsports International | 6110.HK | -18.8% |
| Zhejiang Kuaishou Information Technology | 1024.HK | -18.0% |
| Hygeia Healthcare | 6078.HK | -16.9% |
| ESR Cayman | 1821.HK | -15.6% |
| Sectors | ||
| Utilities | 8.7% | |
| Energy | 5.9% | |
| Financials | 5.5% | |
| Materials | 2.3% | |
| Technology | -0.3% | |
| Consumer Staples | -0.8% | |
| Industrials | -1.6% | |
| Consumer Discretionary | -3.5% | |
| Health Care | -5.2% | |
| Real Estate | -8.6% | |
Renaissance International IPO ETF (NYSE symbol: IPOS) tracks the Renaissance International IPO Index
The Renaissance International IPO Index returned -1.9% last week vs. 1.6% for the iShares MSCI ACWI ex U.S. ETF.
