SHANGHAI- The first batch of blue-chip stocks to list under China’s registration-based initial public offering (IPO) system surged in their Monday debut despite tepidness in the broader market.
The listing of the 10 companies on the main boards in Shanghai and Shenzhen marks the full roll-out of China’s US-style IPO mechanism, designed to make public share sales more market oriented. The system had already been adopted by Shanghai’s tech-focused STAR Market, Shenzhen’s start-up board ChiNext and the Beijing Stock Exchange for small companies.
Shenzhen CECport Technologies Co, an electronic components distributor based in the southern technology hub Shenzhen, opened up 161 percent on Monday, and surged as much as 239 percent, after it raised 2.25 billion yuan ($327.18 million).
Under the new rules, no daily trading limit is set for shares listed after an IPO in their first five trading days. Previously, new stocks listed in China’s main boards could jump as much as 44 percent and slump no more than 36 percent at debut. – Reuters
