Investment Bank China Renaissance’s Stock Plunges in Debut

Shares of investment bank China Renaissance Holdings Ltd. tumbled in their Hong Kong trading debut Thursday.

The stock dropped as much as 19.5% to HK$25.6 ($3.28) in the morning, after a flat opening at the initial public offering price (IPO) of HK$31.8.

By noon, the company’s stock had recovered some, but remained below its IPO price.

Other Hong Kong-listed Chinese mainland stocks have also taken a hit. Hot pot chain Haidilao International Holding Ltd., which listed in Hong Kong on Wednesday, fell below its IPO price on its second trading day on Thursday, after closing a fraction higher in its debut. Online service giant Meituan Dianping, which went public last week, fell below its IPO price Wednesday and continued to drop on Thursday.

Hong Kong’s stock market has entered a bear market as pessimism about the impact of the U.S.-China trade war has spread from the Chinese mainland. The benchmark Hang Seng Index fell 0.45% Thursday morning.

Founded in 2005, China Renaissance has been a significant player in the rise of the technology sector in one of the world’s largest internet markets. It has worked on several deals with tech unicorns, such as the 2015 tie-up between ride-hailing companies Didi Dache and Kuaidi Dache before the new venture swallowed Uber China, and acted as financial adviser for video-streaming site iQiyi Inc. and underwriter for the online service giant Meituan Dianping.

Contact reporter Coco Feng (renkefeng@caixin.com)