TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
China's first batch of bluechips under new IPO system surge in debut
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A man walks by the Shanghai Stock Exchange building at the Pudong financial district in Shanghai, China, on Feb 3, 2020. (Reuters/Aly Song)
T
he 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, 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.
However, stocks listed on the main boards are still subject to the 10 percent daily trading limit afterwards.
Dencare Chongqing Oral Care, an oral products maker, opened up 98 percent and soared as much as 157.7 percent. Other companies, including Shaanxi Energy Investment. Both Engineering Technology, also rose between 50 percent and 120 percent.
China's stock benchmark index slipped roughly 0.3 percent, as investors focused on China's drills around the Taiwan Strait and awaited more data to gauge the strength of China's economic recovery after it dropped restrictive COVID-19 policies.
