To The Moon

China Graphite$CHINA GRAPHITE(02237)$  surged by up to 269 percent to HK$1.2 on first day of trading, making it the best-performing new listing in recent months.

Graphite is a form of carbon that can be used in lithium-ion batteries for electric vehicles and other electric-powered items.

As it was, China Graphite closed 143 percent higher at HK$0.79, pointing to a paper gain of HK$4,650 per board lot of 10,000 shares.

China Graphite had already seen a gain in the local gray markets last Friday, when it rose between 15.4 and 18.5 percent.

The company raised HK$83.8 million in its initial public offering in Hong Kong after pricing its shares at HK$0.32, the bottom end of the indicative range.

However, most companies that debuted in Hong Kong so far this year have fallen on their first day of trade.

Retailer Miniso$MNSO(09896)$, wealth management company Noah$NOAH HOLDINGS-S(06686)$ and piped natural gas distributor Huzhou Gas$HUZHOU GAS(06661)$ fell 3 percent, 4.5 percent and 7.9 percent, respectively, on their first days last week.

Meanwhile, Tianqi Lithium$TIANQI LITHIUM(09696)$, which completed the largest share sale so far in the Hong Kong, closed flat on its debut after dropping 11 percent last Wednesday.

The overall weak starts cast a shadow over a pipeline of large offerings in the SAR, including China Tourism Group Duty Free Corp, the world's largest travel retailer that is planning a share sale of as much as US$3 billion (HK$23.3 billion).

Meanwhile, China Vanke$CHINA VANKE(02202)$ said the separate listing for property management arm in Hong Kong has obtained approval from Chinese regulators yesterday.

And Onewo Space-Tech Service, which aims to raise at least US$2 billion in a Hong Kong listing, could seek a hearing with the Hong Kong Stock Exchange as soon as August, Bloomberg reported last week.

A strong appetite for listings in Hong Kong has yet to return, says Ke Yan, head of research at DZT Research. "Everyone is still working hard to find a deal to profit from," he said.

Tianqi's Hong Kong listing, nevertheless, caps a major turnaround for the firm after a debt crisis just two years ago forced it to sell stakes in prize assets and raised questions for management. The company's revival was aided by an eye-popping gain of more than 1,000 percent for lithium prices since mid-2020.

A fresh global push for electric transport is fueling a demand boom for lithium, and prices for the key material used in EV batteries could remain elevated amid a tight market this year.