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Hong Kong’s Wild Stock Swings Hit New York After IPO Clampdown

  • Smaller firms prefer New York as IPO venue for less scrutiny
  • Calls rise for US regulators to look into post-IPO swings
    

    

Photographer: Michael Nagle/Bloomberg

The wild stock swings that Hong Kong regulators spent more than half a decade trying to stamp out are now popping up in New York.

Post-listing spikes of thousands of percent in two little-known Hong Kong firms over the past weeks have baffled investors in the world’s financial capital. In fact, seven of 10 tiny listings from China and Hong Kong have gone on a tear this year before sudden collapses, catching the eye of the top US regulator. Securities and Exchange Commission Chair Gary Gensler said last week that authorities are well-placed to look into wild gyrations.