Its stock fell as much as 10.5 per cent before closing unchanged, while the broader Hong Kong index ended up nearly six per cent.
The disappointing start for Citic Securities, which raised a less-than-expected $1.7bn (£1.1bn) in its first listing outside the mainland, could dash the hopes of other Chinese firms planning to raise funds in Hong Kong, the world’s biggest IPO market for the past two years.
The offering is the first of nearly $35bn in share sales in Hong Kong and China still planned in the coming months by financial companies, including Haitong Securities, New China Life and China Guangfa Bank.
“It’s a very difficult time for any IPO because market sentiment is so weak right now,” said Patrick Yiu, a director at CASH Asset Management. “Investors want to look for stocks now with a track record with very low valuations. They don’t have the appetite for new stocks.”