Zhejiang Sanhua Shares Fall 7% in $1.2B Hong Kong IPO Debut

Zhejiang Sanhua Intelligent Controls, a Chinese refrigeration components maker aiming to advance into robotics, had a disappointing debut on the Hong Kong stock exchange, with shares falling about 7.2% below their offer price shortly after trading began. The company raised approximately HK$9.3 billion (US$1.2 billion) from the IPO, one of the largest in Hong Kong this year, despite the weak market reception. Sanhua’s shares were priced at the top end of their range and attracted major investors including Jane Street Group and GIC Pte, but the stock’s decline marked the first drop among the four billion-dollar listings in Hong Kong in 2025. This contrasted with other recent IPOs such as Foshan Haitian Flavouring & Food and Jiangsu Hengrui Pharmaceuticals, which saw positive gains on debut, contributing to Hong Kong being the world’s top IPO venue so far this year. The company plans to use part of the proceeds to develop electromechanical actuators for bionic robotics, a market expected to grow significantly by 2029, although it currently generates no revenue from this segment. The tepid debut reflects investor caution despite Sanhua’s global leadership in refrigeration and automotive control components and signals the challenges faced by companies transitioning into emerging tech sectors.