Hong Kong stocks listed! Despite the 5297x subscription "myth," the stock still plummeted. Youlesai shared a 43% drop on the first day of listing! Analyst explains the reasons

On March 9th, Hong Kong stocks welcomed their first new listings after the Spring Festival in the Year of the Horse. Circular packaging service provider Youlesai Sharing (HK02649), industrial robot company Estun (HK02715, SZ002747), and micro-drive leader Zhaowei Electromechanical (HK02692, SZ003021) all listed on the Main Board of the Hong Kong Stock Exchange on the same day.

On the first day of trading, the three companies showed mixed performance. Zhaowei Electromechanical rose over 10% at one point, while Youlesai Sharing and Estun both fell more than 30% and 9%, respectively.

Notably, a review by the Daily Economic News found that since the start of 2026 (up to March 9), a total of 27 new stocks have listed on the Hong Kong Stock Exchange. Most of these saw their opening prices rise on the first day, with Youlesai Sharing and Estun being the only two new listings to debut below their offering prices.

Photos of Youlesai Sharing’s listing event. Source: Daily Economic News reporter Li Xukui

Earlier allocation results showed that all three new stocks were enthusiastically subscribed during the retail phase. Estun received 19.67 times oversubscription, Zhaowei Electromechanical 1,536.76 times, and Youlesai Sharing an extraordinary 5,297.23 times. However, their first-day stock price movements contrasted sharply with the high levels of subscription.

At the close of trading that day, Zhaowei Electromechanical’s stock price slightly retreated, closing at HKD 73.00 per share, up 2.41%, with a total market cap of HKD 19.526 billion. Estun’s stock price fluctuated downward, closing at HKD 12.90 per share, down 16.02%, with a market cap of HKD 12.485 billion. Youlesai Sharing opened lower and continued to decline, closing at HKD 6.20 per share, down 43.64%, nearly halving its value, with a market cap of HKD 560 million.

Why did Youlesai Sharing, with the highest oversubscription ratio, perform poorly on its first trading day? Guotai Securities International strategist Wu Lixian told the Daily Economic News that the primary reason is the company’s relatively low fundraising amount. The IPO raised about HKD 224 million, and after deducting estimated listing expenses of HKD 48.18 million based on the final offering price, the net proceeds were only about HKD 176 million. “With such a low base, a very high oversubscription ratio needs to be taken with a grain of salt.”

Second, from the subscription structure, retail enthusiasm does not fully reflect institutional interest. In the international offering, Youlesai Sharing was only oversubscribed 4.20 times. “Institutional participation was not very large, which affects the overall investment sentiment,” Wu said.

Additionally, the company’s fundamentals should not be overlooked.

The prospectus shows that Youlesai Sharing is a Chinese circular packaging service provider, dedicated to serving automotive parts manufacturers and OEMs (Original Equipment Manufacturers) within the auto industry. The company mainly provides shared operations, managing circular packaging such as pallets, crates, or containers on a shared basis, handling storage, distribution, returns (mainly through third-party logistics providers), cleaning, and maintenance for its clients.

“It operates in a relatively traditional industry. Based on past performance, growth has been moderate, and the trend is not particularly prominent,” Wu said. According to the prospectus, in 2022, 2023, 2024, and the first eight months of 2025, Youlesai Sharing’s revenue was HKD 648 million, HKD 794 million, HKD 838 million, and HKD 533 million, respectively; net profits were HKD 31.2 million, HKD 64.15 million, HKD 50.74 million, and HKD 26.89 million.

Wu added, “The main issue is its small scale. Small companies often see significant gains in a bullish market, but their stock prices tend to be more volatile during downturns.”

On the same day, Youlesai Sharing, Estun, and Zhaowei Electromechanical all listed on the Hong Kong Stock Exchange. Source: Daily Economic News reporter Li Xukui

Regarding the reason why Zhaowei Electromechanical, listed both in Hong Kong and H-shares, did not break below its offering price and closed higher, Wu explained that the market mainly references its A-share price for H-share valuation. Since the Hong Kong IPO began on February 27, Zhaowei Electromechanical’s A-share price has not fluctuated significantly amid the overall declining market, providing support for its H-share pricing. “Additionally, the current H-share price is significantly discounted relative to the A-share price, which is also an important reason for its relatively stable first-day performance.”