The Industrial and Commercial Bank of China (ICBC), the
country's largest lender by assets, made a successful debut on its
first day of trading in Shanghai and Hong Kong on Friday.
Its shares closed at 3.28 yuan (41.5 US cents) in Shanghai, up
5.13 percent from its IPO (initial public offering) price of 3.12
yuan (39.5 US cents). Investors oversubscribed the stock 26 times
in the world's biggest IPO that raised US$19.1 billion.
In Hong Kong, the bank's H shares closed at HK$3.52, up 14.66
percent from its IPO price of HK$3.07.
Share prices fluctuated between HK$3.63 and HK$3.50, with the
peak price 18 percent higher than the IPO price. Bullish sentiment
lifted the benchmark Hang Seng Index to a six-year high in the
morning session.
It was the first-ever simultaneous listing in both Hong Kong and
Shanghai by a giant mainland lender. The IPO represents about 15
percent of the bank's enlarged share capital.
"It is the day of the ICBC... It surely will attract many other
companies to follow suit and launch dual listings, because the
A-share market policy and regulations are getting sound and mature
and the economic gap between Hong Kong and the mainland is
narrowing," said Andrew To, director of Hong Kong-based Taifook
Securities.
However, market watchers were a little disappointed, as they had
expected the shares to rise as much as 12 percent on the Shanghai
market.
"The closing price was lower than expected," said She Minhua, a
banking analyst with CITIC China Securities. He had expected the
shares to close at up to 3.5 yuan (44.3 US cents) on their
debut.
Bank of China (BOC), the country's second biggest lender, made a
strong debut by rising as high as 23 percent from its IPO price of
3.08 yuan (39 US cents) on July 5.
BOC shares closed at 3.30 yuan (41.8 US cents) on Friday in
Shanghai.
"ICBC shares should be higher than those of the BOC, given the
former's largest operating network across the country. And the ICBC
is also expected to increase its revenue on bank commission fees
faster than the BOC," She said.
The benchmark Shanghai composite index closed at 1,807.18, down
0.19 percent.
The Hang Seng Index closed at 18,297.55, 0.31 percent lower,
after rising 92.72 points to 18,446.46 by midday.
Analysts attributed the fluctuation to the speculative
activities of investors who want to buy once the stock opens and
sell before the market closes.
ICBC Chairman Jiang Jianqing said at the stock opening ceremony
that he was "very, very satisfied" with the listing and the stock's
debut performance.
"The listing was very successful. It will help improve our
management. The strong demand reflects the acceptance by the
international investment community of the ICBC," Jiang told
reporters.
(China Daily October 28, 2006)