China Construction Bank makes flat HK debut
By Lillian Lau (China Daily)
Updated: 2005-10-28 05:48
HONG KONG: The mainland's third-largest bank China
Construction Bank (CCB) made a flat trading debut yesterday with its share price
ending at HK$2.35 (30 US cents), unchanged.
Guo Shuqing, chairman of China Construction
Bank Corporation (CCB), toasts during the debut of CCB at the Hong Kong
Stocks Exchange October 27, 2005. [Reuters]
The sluggish market environment sweeping Hong Kong has been blamed for the
lack-lustre performance of the lender, which raised US$8 billion in its initial
public offering (IPO) last week, the world's largest in the past four years.
The stock, one of the most active stocks on the Hong Kong fund market, rose
by 1.06 per cent from HK$2.35 to HK$2.375 at midday, but slipped down to the
starting price later.
A total of 3.367 billion shares changed hands, involving HK$8.58 billion
CCB's shares were up roughly 1 per cent in the grey market before they
started trading on the Hong Kong Stock Exchange yesterday.
"October is traditionally off season for Hong Kong's stock market," said
Andrew To, executive director at Tai Fook Securities, adding that this partly
explains CCB's sluggish debut.
The Hang Seng Index has lost 6.7 per cent so far this month.
Additionally, CCB's IPO price is a little bit high for shareholders to make a
quick sale of shares.
"If it was priced around HK$2.23, the situation would be
better," said To.