Give Chinese hypermarket retailer Sun Art Retail Group Ltd credit for contrarianism. At a time when the SEC is investigating Chinese companies left and right for stock fraud, accounting fraud, public relations fraud, and just plain fraud fraud, Sun Art is going ahead with its planned $1 billion initial public offering set for July in Hong Kong -- the hot place for IPOs this year, even if overall stock performance has been underwhelming so far. The problem is, according to the Wall Street Journal, recent IPOs raised the money, but mostly tanked in the aftermath of opening day.
If Hong Kong gets a general reputation for easy money and poor performance, what does it say about the reputation for the companies that seek IPOs there and their chance for success? Six firms, including Sun Art and sportswear manufacturer Hosa International Ltd, are seeking more than $7.4 billion in IPO financing over the next few weeks.
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