Another Hong Kong IPO bites the dust

Xing Yuan Power pulls its $91 million to $121 million IPO as investors shun small, illiquid names — setting a poor precedent for four other listing candidates due to price this week.
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A lonely broker at HKEx, where Xing Yuan Power failed to attract interest in its IPO (AFP)
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<div style="text-align: left;"> A lonely broker at HKEx, where Xing Yuan Power failed to attract interest in its IPO (AFP) </div>

The Hong Kong stockmarket closed marginally higher yesterday, making it the first time this month that it managed to post gains for two sessions in a row, but that wasn’t enough to save the initial public offering of Xing Yuan Power Holdings, a Chinese manufacturer of mid-range diesel generator cores for use in permanently installed and mobile power systems. The company, which was the first among five listing hopefuls of size due to price in Hong Kong this week, pulled its offering yesterday on the final day of bookbuilding, according to sources.

The reason, they said, was the challenging market environment, which makes it particularly difficult to convince investors to...

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