Mainland newcomers soar in HK

By Lillian Liu and Hu Yuanyuan (China Daily)
Updated: 2006-12-16 13:20

Shares of two mainland companies soared on their trading debut in Hong Kong on Friday, pushing the index of mainland firms to a record high.

China Communications Construction Co Ltd, which raised US$2.1 billion by selling shares at HK$4.6 (59 US cents) apiece in its Hong Kong initial public offering (IPO), opened at HK$7.8 on Friday morning, up 70 per cent.

Newly listed shares in China Communications Construction, the mainland's top port builder, slid to HK$6.36 (82 US cents) at the end of the day, but this was still 38 per cent higher than its IPO price.

"China Communications Construction is a very strong company with strong development potential, because it's a key player in the country's infrastructure sector, and infrastructure is of vital importance to all countries," said Marco Mak, head of research at Taifook Securities Ltd.

Meanwhile, the mainland's hotel operator, Shanghai Jin Jiang International Hotels started its first trading day with pre-market shares as much as 91 per cent higher than its IPO price. The shares ended at HK$3.81, up by 73 per cent on the IPO price.

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