Hong Kong's Hottest IPOs Often Presage Market Reversals: Chart

(Bloomberg) -- Investors celebrating the sizzling initial public offering of China Literature Ltd. might want to bear in mind the lessons of history. Hong Kong’s most successful IPOs -- based on offer size of a minimum $100 million and whose shares rose at least 100 percent on the first day of trading -- were typically near the peak of the market. Just as China Literature tapped red-hot demand for the nation’s tech stocks, so others reflected the favored trends of the day: from the dotcom bubble in 2000 to bets on China’s thirst for metals in 2007.

To contact the reporter on this story: Moxy Ying in Hong Kong at yying13@bloomberg.net.

To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net, Ben Scent

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