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| China Merchants Bank soars 25% in debut |
| News Archive - Industry Headline - September news | |
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(ChinaKnowledge, Sept 25, 2006) Shares of China Merchants Bank Co. Ltd., the Mainland’s sixth-largest lender, rose 25% in their trading debut last Friday on the back of strong investor demand for the bank’s HK$18.81 billion IPO in Hong Kong. Shares of the company rose as high as 30% that day before finishing at HK$10.68, well above its offer price of HK$8.55 per share. Meanwhile, the bank’s Shanghai-traded stock fell by 1.8% to RMB 9.46 (HK$9.30) after hitting a record high of RMB 10.09 in earlier trading. The 25% rise in shares on first-day trading is the best record so far among all four Mainland banks that have been listed in Hong Kong, according to a report by the China Daily. China Merchants Bank is the fourth Mainland bank to list on the Hong Kong Stock Exchange. Bank of Communications Co. Ltd., the first Mainland bank to list in Hong Kong, rose 13% in its debut on the Hong Kong Stock Exchange on Jun. 23, 2005. The China Construction Bank Corp., the third-largest lender on the Mainland, closed flat on its first day, Oct. 27, 2005, at HK$2.35 per share. Bank of China Co. Ltd., the latest Mainland bank to list in Hong Kong, saw its stock rise by 15% on the first day of trading on Jun. 1 this year. Chairman of CMB Qin Xiao was quoted by China Daily as saying: "We are very satisfied with the trading performance so far. The successful listing of our bank on the Hong Kong Stock Exchange is a milestone for our bank's development. Our target is to make the group the most competitive and a world-class international bank."
China Merchants Bank retail tranche 170 times oversubscribed China Merchants Bank cuts dividends to boost reserves |
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