Pursuits
Global Giants Listed in Hong Kong Crumble as Ties to China Backfire
- Prada sinks below IPO price amid downturn in luxury spending
- Glencore battered after economic slowdown sinks commodities
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International companies that listed shares in Hong Kong to highlight their ties with China are finding what once was a bragging right is now a burden.
The city’s 20 biggest firms domiciled outside Hong Kong and the mainland dropped an average 27 percent this year through Wednesday, versus a 12 percent decline in the Hang Seng Index. Macau casino operators and Prada SpA, an Italian handbag maker, have tumbled as China’s economy slowed and the government discouraged extravagant spending. Glencore Plc, the Swiss commodities group run by Ivan Glasenberg, was down 72 percent even after a record rally on Wednesday.