China Shipping Container Lines Co (CSCL), the second-largest in Asia, surged 75 per cent on its Shanghai stock exchange debut as investors bet rising trade will provide stable earnings.
Resounding success: CSCL chairman Li Shaode (right), celebrates the firm's trading debut during a ceremony at the Shanghai Stock Exchange yesterday.
The company climbed to 11.57 yuan from its 6.62 yuan offer price. The Shanghai-based shipping line raised 15.5 billion yuan (S$3 billion) in its stock sale for ships and other container- shipping assets.
The sale attracted bids for about 170 times the stock on offer as investors sought long-term beneficiaries of China's economic growth. The company follows China Railway Group Ltd in surging on its debut as stockholders seek out large, new listings following a 17 per cent plunge in the benchmark CSI Index last month.
'New share sales are a safer choice for investors who have become more cautious after the stock tumble,' said Edward Wong, an analyst at Quam Ltd. in Hong Kong. 'Excessive capital in the mainland has to find chips to buy even when the market is volatile.' China Shipping attracted 2.64 trillion yuan worth of orders for the stock sale, according to a Shanghai Stock Exchange statement on Monday.
It plunged 12 per cent to HK$5.61 in Hong Kong after billionaire Li Ka-shing's flagship companies offered to sell stock in the company and larger rival China Cosco Holdings Ltd.
China Shipping has a market value of US$15.1 billion, the fourth highest among shipping lines behind AP Moeller-Maersk A/S, China Cosco and Mitsui O.S.K. Lines Ltd, according to data complied by Bloomberg.
The CSI 300 Index of shares listed in Shanghai and Shenzhen fell 1.2 per cent, the first decline in eight days, after China's central bank tighter rules for mortgage loans.
China Railway, Asia's biggest construction company, rose 69 per cent on its Dec 3 Shanghai debut, following a 163 per cent surge for PetroChina Co's yuan-denominated shares on Nov 5.
PetroChina's 66.8 billion yuan share sale, the country's largest this year, attracted bids worth 3.3 trillion yuan, or about 50 times the stock on offer.
'China has a lack of investment channels for its people's booming wealth,' said Quam's Mr Wong. 'As property investment is curbed, the stock market will surely grow.' The CSI 300 Index has risen about 150 per cent this year as mainland investors seek returns on US$2.3 trillion of savings.
China Shipping will use more than half of its sale proceeds, or 8.8 billion yuan, to build 16 container vessels inside and outside China, the company said in a statement on Monday. It will spend 2 billion yuan buying container-related assets from parent China Shipping (Group) Co, Chairman Li Shaode said in a recent interview. The firm will eventually receive all of its parent's container-related assets, including terminals and logistics divisions, said Mr Li.
Resounding success: CSCL chairman Li Shaode (right), celebrates the firm's trading debut during a ceremony at the Shanghai Stock Exchange yesterday.
The company climbed to 11.57 yuan from its 6.62 yuan offer price. The Shanghai-based shipping line raised 15.5 billion yuan (S$3 billion) in its stock sale for ships and other container- shipping assets.
The sale attracted bids for about 170 times the stock on offer as investors sought long-term beneficiaries of China's economic growth. The company follows China Railway Group Ltd in surging on its debut as stockholders seek out large, new listings following a 17 per cent plunge in the benchmark CSI Index last month.
'New share sales are a safer choice for investors who have become more cautious after the stock tumble,' said Edward Wong, an analyst at Quam Ltd. in Hong Kong. 'Excessive capital in the mainland has to find chips to buy even when the market is volatile.' China Shipping attracted 2.64 trillion yuan worth of orders for the stock sale, according to a Shanghai Stock Exchange statement on Monday.
It plunged 12 per cent to HK$5.61 in Hong Kong after billionaire Li Ka-shing's flagship companies offered to sell stock in the company and larger rival China Cosco Holdings Ltd.
China Shipping has a market value of US$15.1 billion, the fourth highest among shipping lines behind AP Moeller-Maersk A/S, China Cosco and Mitsui O.S.K. Lines Ltd, according to data complied by Bloomberg.
The CSI 300 Index of shares listed in Shanghai and Shenzhen fell 1.2 per cent, the first decline in eight days, after China's central bank tighter rules for mortgage loans.
China Railway, Asia's biggest construction company, rose 69 per cent on its Dec 3 Shanghai debut, following a 163 per cent surge for PetroChina Co's yuan-denominated shares on Nov 5.
PetroChina's 66.8 billion yuan share sale, the country's largest this year, attracted bids worth 3.3 trillion yuan, or about 50 times the stock on offer.
'China has a lack of investment channels for its people's booming wealth,' said Quam's Mr Wong. 'As property investment is curbed, the stock market will surely grow.' The CSI 300 Index has risen about 150 per cent this year as mainland investors seek returns on US$2.3 trillion of savings.
China Shipping will use more than half of its sale proceeds, or 8.8 billion yuan, to build 16 container vessels inside and outside China, the company said in a statement on Monday. It will spend 2 billion yuan buying container-related assets from parent China Shipping (Group) Co, Chairman Li Shaode said in a recent interview. The firm will eventually receive all of its parent's container-related assets, including terminals and logistics divisions, said Mr Li.