Sunshine Lake Pharma falls in Hong Kong stock market debut

Sunshine Lake Pharma’s shares fell on their debut in Hong Kong, as the buzz over first-day trading took a breather even as the market extended gains following China’s strong trade data in July.

Known also as Guangdong Dongyangguang Pharmaceutical, Sunshine was the first stock to commence trading by introduction on the local exchange after a takeover of its Hong Kong-listed subsidiary.

Trading under the stock sign 6887, Sunshine’s shares began trading at HK$57.50, a discount of 4.5 per cent to the last traded price of its unit of HK$60.24 a day earlier. The shares were at HK$59.65 at 3.17pm local time.

More than 50 drug companies are looking to raise capital in Hong Kong, answering a drive by the bourse operator Hong Kong Exchanges and Clearing (HKEX), which has turned the city into the world’s second-largest fundraising hub for pharmaceutical and medical research start-ups.

“The company will accelerate the integration of high-quality resources, speed up the commercialisation and globalisation of its innovative drug pipeline, and inject strong momentum into sustainable growth,” Sunshine’s chairman Zhang Yingjun said before striking a ceremonial gong at the HKEX’s Connect Hall to mark the commencement of trading.