Another Hong Kong IPO bites the dust

The Hong Kong stockmarket closed marginally higher yesterday, making it the first time this month that it managed to post gains for two sessions in a row, but that wasn’t enough to save the initial public offering of Xing Yuan Power Holdings, a Chinese manufacturer of mid-range diesel generator cores for use in permanently installed and mobile power systems. The company, which was the first among five listing hopefuls of size due to price in Hong Kong this week, pulled its offering yesterday on the final day of bookbuilding, according to sources.

The reason, they said, was the challenging market environment, which makes it particularly difficult to convince investors to...