CCTC gray market slides 5.1% before Hong Kong Main Board debut

CCTC (06951.HK) gray market opened down 5.3% at $95 ahead of its July 9 Hong Kong Main Board listing.

Futu data showed the stock last changing hands at $95.2, down 5.1% from the listing price, on volume of 578,300 shares and turnover of $55.2 million. PhillipMart data showed a similar closing pattern, with the stock at $95.15, also down 5.1%, though its opening print differed at $100.6, up 0.3%. The platform recorded volume of 372,000 shares and turnover of $35.4 million.

The discrepancy in opening prints between the two platforms — one down 5.3% and the other up 0.3% — highlights the fragmented nature of gray market trading, where prices can vary across brokers before a single listed price emerges. Combined gray market turnover across the two platforms reached $90.6 million, reflecting active pre-listing trading. The listing price of approximately $100 will serve as the reference for the company's official debut on the Main Board.

The gray market discount points to tepid demand ahead of the listing, contrasting with a strong first half for Hong Kong IPOs that nonetheless lacked mega-sized deals. BofAS cut its target price on HKEX (00388.HK) to HKD500, citing the absence of large listings despite strong IPO activity in the first half. The bank noted that while first-half IPO volumes were solid, the lack of jumbo deals weighed on fee income expectations for the exchange operator. Hong Kong has seen a recovery in IPO activity this year, though the average deal size has remained smaller than pre-pandemic levels, with most new listings coming from small and mid-cap companies.

First-day trading on July 9 will test whether institutional demand materializes at the listing price. A sustained discount in the gray market often precedes a weak debut, while a narrowing gap could indicate last-minute buying interest from institutional investors. The company's performance on its first trading day will also serve as a barometer for upcoming Hong Kong listings.

This article is for informational purposes only and does not constitute investment advice.