Shares of NAYUKI, a leading Chinese bubble tea chain, surged 31.64% in Thursday morning trading on the Hong Kong stock exchange. The sharp rally came amid heightened investor interest in the bubble tea sector, driven by the highly anticipated IPO of Mixue Group, China's largest fresh-drinks chain.
The buzz surrounding Mixue Group's upcoming IPO appears to have spilled over to other players in the industry. According to reports, the retail portion of Mixue's Hong Kong IPO attracted an overwhelming HK$1.6 trillion (US$205.9 billion) in subscriptions, with retail investors borrowing nearly HK$1.8 trillion in margin loans to participate.
Analysts cited the positive market sentiment, recent stock market rally, and easy margin financing terms offered by brokers as contributing factors to the hype around Mixue's IPO and the broader bubble tea sector. The endorsements from large funds and investor optimism regarding the growth prospects of the industry have also fueled the sector's rally.
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