School of Business and Management Department of Finance 186 Hong Kong IPO Market Supervisor: ZHANG Chu / FINA Student: SUN Beini / RMBI ZHAO Xuehan / QFIN Course: UROP2100, Fall UROP2100, Fall This research consists of two parts. First, we calculated short-term and long-term returns of stocks listed in the main board of the Stock Exchange of Hong Kong together with both market-adjusted and sector-adjusted returns and examined the distribution of the returns. Second, we did prescriptive regression analyses of the expected short-term and long-term returns using best subset selection method and stepwise selection method based on information known upon IPO, such as firm-specific financial fundamental information, market condition and sector condition. And we drew three key findings about the stock performance prediction from the regression models from both short-term and long-term perspectives. Hong Kong IPO Market Supervisor: ZHANG Chu / FINA Student: WONG Cheuk Wun / RMBI Course: UROP1100, Fall UROP2100, Spring The Hong Kong IPO atmosphere remains active in 2021, recording 96 companies issuing their initial stocks. Nayuki Holdings Ltd, a tea-making company that IPO in 2021 is being studied in this paper. Despite the fact that the company had recorded a large pre-IPO subscription ratio, implying a massive demand for the company’s stock, its stock price recorded a significant amount of first-day drop as large as 15.76% upon its first day of listing. As of April 03, 2022, the accumulated drop has reached 72.15% from the offer price of HKD 19.8 to HKD 4.64. This serves as the motivation for this paper to perform a detailed investigation of the company’s background and business. After studying the global offering prospectus and related news which were published around the date of IPO, two major discrepancies have been discovered which might First, be the causes of the mentioned phenomenon. Hong Kong IPO Market Supervisor: ZHANG Chu / FINA Student: WONG Yan Yin / QFIN Course: UROP1100, Spring The rest of the paper will dive down into the company's valuation to explore the rationale behind the price movement of Kuaishou Technology. If it was underpriced, what is the incentive and reason behind it? If it was not underpriced, what is the cause of the unexpectedly high demand in the market? Does that indicate the group has chosen the perfect timing to get listed to maximize the profit? Finally, the paper will explore the reason behind the abnormal price movement of Kuaishou.
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