New China Life shares surge on debut
By Lu Nengneng |
December 17, 2011, Saturday
|
Print Edition
Print Edition
NEW China Life Insurance Co yesterday surged on its first trading day in Shanghai despite a weak debut in Hong Kong on Thursday.
China's third-largest life insurer soared 13.7 percent to close at 26.44 yuan (US$4.17) after selling 158.5 million shares at 23.25 yuan apiece as investor sentiment improved on the 2 percent rally in the Shanghai Composite Index that snapped six straight days of losses.
The insurer's strong performance in Shanghai drove its stock in Hong Kong up 2.7 percent to HK$26.45 (US$3.40), easing the 9.8 percent plunge on the first day of its public trading. The Hang Seng Index yesterday advanced 1.4 percent to close at 18,285.39 points.
The company, as the fourth Chinese insurer to go public, has raised a total of US$1.9 billion after selling shares around the bottom of the price range marketed to investors.
Despite the recent general market declines, the presence of state-owned capital Central Huijin Investment as the insurer's major shareholder and the higher expectations on its premium increase than on its rivals strengthened investor confidence, analysts said.
Hong Jinping, analyst at China Merchants Securities, said the latest fundraising will ease the company's cash crunch and help it achieve 24 percent compound annual growth in the next few years.
During the road show for the initial public offering, Kang Dian, chairman of New China Life Insurance, said he was confident that the company will eventually outperform its peers as it is evolving beyond life insurance toward emerging sectors, such as endowment and medical insurance, in search of new growth points.
Its biggest rival China Life Insurance Co rose 1.4 percent to 16.84 yuan while Ping An Insurance (Group) Co gained 2.1 percent to close at 35.95 yuan yesterday.
China's third-largest life insurer soared 13.7 percent to close at 26.44 yuan (US$4.17) after selling 158.5 million shares at 23.25 yuan apiece as investor sentiment improved on the 2 percent rally in the Shanghai Composite Index that snapped six straight days of losses.
The insurer's strong performance in Shanghai drove its stock in Hong Kong up 2.7 percent to HK$26.45 (US$3.40), easing the 9.8 percent plunge on the first day of its public trading. The Hang Seng Index yesterday advanced 1.4 percent to close at 18,285.39 points.
The company, as the fourth Chinese insurer to go public, has raised a total of US$1.9 billion after selling shares around the bottom of the price range marketed to investors.
Despite the recent general market declines, the presence of state-owned capital Central Huijin Investment as the insurer's major shareholder and the higher expectations on its premium increase than on its rivals strengthened investor confidence, analysts said.
Hong Jinping, analyst at China Merchants Securities, said the latest fundraising will ease the company's cash crunch and help it achieve 24 percent compound annual growth in the next few years.
During the road show for the initial public offering, Kang Dian, chairman of New China Life Insurance, said he was confident that the company will eventually outperform its peers as it is evolving beyond life insurance toward emerging sectors, such as endowment and medical insurance, in search of new growth points.
Its biggest rival China Life Insurance Co rose 1.4 percent to 16.84 yuan while Ping An Insurance (Group) Co gained 2.1 percent to close at 35.95 yuan yesterday.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
