Hong Kong IPOs hand shares to 'friends and family' groups
Business
Hong Kong's IPO scene has been on fire this year, with new listings jumping almost 30% on their first day.
But here's the twist: companies are now handing out shares to "friends and family" groups (think strategic investors, suppliers, and business partners).
Hong Kong institutional investors left empty-handed
Major IPOs like Victory Giant Technology and Lingyi iTech have already shifted to this approach, sometimes leaving traditional institutional investors empty-handed.
Critics worry this trend could hurt transparency and market trust.
Regulators are watching closely, especially since more than half of Hong Kong's 10 biggest listings this year are already trading below their original prices.