Hong Kong IPO boom at risk as cornerstone backers get cold feet, sources say

Exuberance among cornerstone investors in Hong Kong’s booming initial public offering (IPO) market seems to be fading, forcing some issuers that had hoped to list this month to postpone their offerings. With more than 60 per cent of new listings in the third quarter now trading below their issue prices, cornerstone investors – who typically receive guaranteed allocations in exchange for holding shares for six months – are reconsidering whether to subscribe to coming deals, according to people...