Cornerstones weigh down Hong Kong IPOs

Cornerstone investors are painted as the foundation of solid growth but their track record on Hong Kong IPOs suggests they weigh down stock prices.

Cornerstones weigh down Hong Kong IPOs

Rising wealth in China has undoubtedly had a positive influence on capital markets but data shows that the way some of those riches are harnessed in cornerstone investments is damaging the aftermarket performance of listed companies in Hong Kong.

Issuers with significant Chinese cornerstone backing large investors brought on board before the launch of an IPO have performed poorly compared to those with cornerstone support from global institutions such as BlackRock or...

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