New share offerings sizzle on Shenzhen debut

SHANGHAI: Chinese investors penchant for newly listed stocks reached a feverish pitch on Friday at the debut of the first two companies on the smaller Shenzhen Stock Exchange after a 9-month ban on initial public offerings (IPOs).

Zhejiang Wanma Cable soared 134.3 percent from its issue price to 26.95 yuan before the bourse called for a trading suspension to allow for a cooling off period. The share price of another debutant, Guilin Sanjin Pharmaceutical, also jumped 96.97 percent from its issue price at the opening to 39 yuan when trading in its shares was also halted.

At the end of the day, the Shenzhen Component Index rose 0.54 percent from Thursday to close at 12706.01 points, but the key indicator of the bigger Shanghai Stock Exchange edged down 0.29 percent to 3113.93.