Hong Kong's Hottest IPOs Often Presage Market Reversals

Investors celebrating the sizzling initial public offering of China Literature Ltd. might want to bear in mind the lessons of history. Hong Kong’s most successful IPOs -- based on offer size of a minimum $100 million and whose shares rose at least 100 percent on the first day of trading -- were typically near the peak of the market. Just as China Literature tapped red-hot demand for the nation’s tech stocks, so others reflected the favored trends of the day: from the dotcom bubble in 2000 to bets on China’s thirst for metals in 2007.

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