True value of trust in newly listed SF Express remains to be seen

THE DOMESTIC EXPRESS DELIVERY COMPANY SF EXPRESS was listed on the Shenzhen Stock Exchange last Thursday. On each of the first four trading days, its stock had risen by the daily limit, thus making the company's founder and chairperson Wang Wei extremely wealthy. Beijing News on Thursday comments:

Wang Wei must be very happy. The share price of SF Express has risen so much that by Wednesday, its total market value reached 310 billion yuan ($45 billion), of which 180 billion yuan belongs to him. If the trend continues, Wang might soon be the richest person in China.

That has much to do with the growth potential of the company. The price of a company's shares shows the market's trust in its future growth. The more investors trust it, the more they will rush to buy its shares, which in turn pushes its share price higher. SF Express has huge growth potential and investors trust that it will continue to grow.