Shares of supply-chain manager Speedy Global surged on their debut in Hong Kong yesterday, signalling a recovery in investors' appetite for small and mid-cap stocks and sparking listing hopes for other small firms.
The city's retail investors had been enthusiastic recently about companies that could cash in on the mainland's new emphasis on consumption amid speculation that this sector might be the best positioned to benefit from the new leadership's push towards greater urbanisation, according to the head of the retail branch of a major Hong Kong broker, who refused to be named.
Speedy Global manages supply chains for the apparel and garment industry.
The stock soared 39.02 per cent to close at HK$1.14 yesterday after surging as much as 56.1 per cent in the morning. The Hang Seng Index dipped 0.14 per cent for the day.
Speedy Global surpassed local cha chaan teng operator Tsui Wah to become the third-best first-day performer among the companies that have listed their shares in Hong Kong since the beginning of last year, after Sunley and China Putian Food.