Asia

Quality versus quantity

Post-crisis, it seems that no success story is complete without at least some predictions of impending failure. So, reports this month of investor malaise creeping into the Hong Kong market following a wave of poorly performing new listings would seem, at first, to be best taken with a pinch of salt.

The Hong Kong stock exchange's (HKEx) rise to global listing venue of choice has, after all, been relatively rapid and largely fortuitous.

Through a combination of clever marketing and fortunate positioning in a high-growth region, the HKEx emerged post-financial crisis as the self-styled gateway to a rapidly growing mainland Chinese market. And soon enough everyone, from family businesses to global fashion houses, wanted in on the action.

With 113 newly listed companies on the exchange in 2010, and total funds raised by initial public offerings (IPOs) amounting to $57 billion, HKEx last year successfully surpassed...