China Markets Trade Down, Foshan Haitian's Hong Kong IPO Attracts Huge Retail Interest

Li Chen
19 Jun, 2025
Hong Kong

Stocks in China and Hong Kong declined amid growing anxieties about global oil supply and interest rate paths. 

The Hang Seng index decreased 1.9%, and the mainland-focused CSI 300 index dropped 0.8% as the U.S. mulled its possible involvement in Israel's war on Iran. 

The U.S. Federal Reserve held its key lending rate range unrevised and signaled inflation is likely to persist because of the Trump administration's tariffs. 

The central bank left the federal funds rate range between 4.25% and 4.50% for the fourth consecutive meeting in 2025 but signaled two possible additional rates in the year.

The higher-for-longer rate outlook dampened residential property developers in Hong Kong because the Hong Kong Monetary Authority follows the U.S. rate policy to maintain its currency peg with the U.S. dollar. 

Investors also reviewed the latest announcements from policymakers after a two-day gathering in Beijing, and financial regulators signaled more flexibility with southbound investment fund flows on the Stock Connect platform. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 1.9% to 23,255.72, and the mainland-focused CSI 300 index dropped 0.8% to 3,844.67. 

China Vanke Co. Ltd. declined 3.2% to HK $4.76, and Longfor Group Holdings decreased 3.3% to HK $9.30. Sun Hung Kai Properties Ltd. dropped 1.7% to HK $83.80, and Henderson Land Development Co. Ltd. fell 0.2% to HK $26.60. 

Foshan Haitian Flavouring and Food completed its HK $10.1 billion, or $1.3 billion, initial public offering and listed its stock on the Hong Kong Stock Exchange. 

The soy sauce maker sold 279 million shares and priced its offering at HK $37.50 per share.

The company allocated 19.8% of its total offered shares to individual investors after the retail tranche was oversubscribed 917 times and 80.2% to global funds. 

The company's blockbuster offering to global fund managers, or institutional investors, was oversubscribed 22 times. 

The company's Shanghai-listed shares declined 3% to 39.22 yuan, and the mainland-based company plans to use its offering proceeds to fund its international expansion and production capacity. 

Foshan Haitian's public offering was the second-largest offering in Hong Kong in 2025, following the electric vehicle battery maker CATL's HK$41 billion and Jiangsu Hengrui Pharmaceuticals' HK$9.9 billion offering.