By Martin Mou

Yum China Holdings Inc. shares stumbled in their Hong Kong debut after the operator of KFC and Pizza Hut in China raised around US$2.2 billion from the listing.

Yum China shares opened slightly below their IPO price of 412 Hong Kong dollars (US$53.16) and then continued sliding in Thursday morning trade. The stock was last down 4.9% at HK$392.00.

The weak debut wasn't entirely unexpected. Prior to the start of trade, Yum China shares had slipped on gray-market platforms operated by Bright Smart Securities and Phillip Securities.

Yum China's secondary listing in Hong Kong is the latest in a series of Chinese companies listed in New York that have tapped the Asian financial hub, including Alibaba Group Holding Ltd., JD.com Inc. and NetEase Inc.

NYSE-listed shares of Yum China have risen since U.S. fast-food operator Yum Brands Inc. spun it off in late 2016.

The secondary listing could forge closer ties between Yum China and its Chinese customers, which bodes well for its medium and long-term development, UBS analyst Peihao Huang says.

Peihao Huang expects more restaurant chains will consider IPOs in Hong Kong as the Covid-19 pandemic heightens the need for easier access to capital in response to unexpected situations. 



  Write to Martin Mou at martin.mou@wsj.com