Brokerage makes subdued debut
By Winny Wang |
August 19, 2009, Wednesday
|
Print Edition
Print Edition
EVERBRIGHT Securities Co surged 29.98 percent on its trading debut yesterday, but the stock trailed behind the average 109 percent increase of seven other companies that floated shares on the Chinese mainland this year.
The Shanghai-based brokerage opened at 30 yuan (US$4.39) and closed at 27.40 yuan apiece after gaining as much as 46 percent to 30.88 yuan, indicating that investors may be getting lukewarm after previous debuts surged and triggered concerns of possible bubbles forming.
"Investors returned to a rational mood toward new share sales after recent corrections and the opening price for Everbright was reasonable," said Liu Jun, an analyst at Changjiang Securities Co.
Since August 4, the Shanghai Composite Index has fallen about 16 percent from its record high this year after the Chinese government adopted a tough stance against credit growth.
The brokerage raised 10.96 billion yuan in its initial public offering, the first by a Chinese brokerage since the end of 2002. It will use proceeds to replenish working capital and to raise the number of outlets to more than 120 via mergers and acquisitions and by opening new ones.
"If it opens five new outlets every half year, its business will rise 50 percent annually in the next two years," said Hongyuan Securities Co.
The Shanghai-based brokerage opened at 30 yuan (US$4.39) and closed at 27.40 yuan apiece after gaining as much as 46 percent to 30.88 yuan, indicating that investors may be getting lukewarm after previous debuts surged and triggered concerns of possible bubbles forming.
"Investors returned to a rational mood toward new share sales after recent corrections and the opening price for Everbright was reasonable," said Liu Jun, an analyst at Changjiang Securities Co.
Since August 4, the Shanghai Composite Index has fallen about 16 percent from its record high this year after the Chinese government adopted a tough stance against credit growth.
The brokerage raised 10.96 billion yuan in its initial public offering, the first by a Chinese brokerage since the end of 2002. It will use proceeds to replenish working capital and to raise the number of outlets to more than 120 via mergers and acquisitions and by opening new ones.
"If it opens five new outlets every half year, its business will rise 50 percent annually in the next two years," said Hongyuan Securities Co.
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