Zhejiang Sanhua shares fall in Hong Kong debut, first drop in 2025’s club of billion-dollar IPOs

Chinese heating systems supplier Zhejiang Sanhua Intelligent Controls had a tepid trading debut in Hong Kong on Monday, with investors selling shares following the initial public offering (IPO) frenzy.

Trading under the code 2050, the stock began trading at HK$20.95 amid a declining market, 7.2 per cent lower than its offer price of HK$22.53, in an upsized offering that raised HK$9.3 billion (US$1.2 billion).

Sanhua’s lack-lustre debut was the first decline in the four billion-dollar stock listings in Hong Kong this year, where mainland-listed companies sold H shares in Hong Kong in the so-called A-to-H listing trend.

Contemporary Amperex Technology, Jiangsu Hengrui Pharmaceuticals and Foshan Haitian Flavouring and Food gained 0.6, 16.4 and 25.2 per cent on debut, respectively. These deals helped make the Hong Kong stock exchange 2025’s top IPO venue globally.

Zhang Yabo, the chairman of Zhejiang Sanhua Intelligent Controls, speaking at the company’s trading debut on the Hong Kong stock exchange on June 23, 2025. Photo: Aileen Chuang

Investors have been showing strong interest in recent IPO bids. Sanhua was oversubscribed by around 747 and 23 times among retail and institutional investors, respectively, according to the allotment results published by the company on Friday.

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Zhejiang Sanhua shares fall in Hong Kong debut, first drop in 2025’s club of billion-dollar IPOs

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