(Updates share prices)
HONG KONG, Dec 2 (Reuters) – Shares of Evergrande Property Services fell marginally on their Hong Kong debut on Wednesday, shedding initial gains as the spinoff of China’s second-largest property developer struggled to shake off worries about debt and competition.
Concerns about the financial health of its parent, China Evergrande Group, have clouded Hong Kong’s third-largest listing of the year, with China’s most indebted developer planning to use half the $1.8 billion raised for its own debt repayment.
The stock opened at HK$8.84 per share, a 0.45% premium to the HK$8.80 initial public offer price, but closed 0.2% lower at HK$8.78. It fell as much as 3% during the session.
Shares of China Evergrande fell 2.5%, while the Hong Kong market was down 1%.
“There are simply too many property management companies already listed,” said Dickie Wong, executive director at Kingston Securities. “(The) mother company’s net gearing