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CITIC Bank shares nearly double on debut

Shares in China CITIC Bank nearly doubled on their first day of trading in Shanghai Friday, the Financial Times reported. CITIC Bank, which raised US$4.5 billion in a dual Hong Kong-Shanghai listing, defied concerns about high valuations for Chinese stocks to close on RMB11.37 (US$1.47), an increase of 96%. The bank's shares in Hong Kong rose 14% to close at HK$6.68 (US$0.85). Chen Xiaoxian, president of CITIC Bank, said the stock performance in Shanghai was stronger than expected. Some analysts put this down to the relatively small size of the mainland share allocation, which was les than half the size of the Hong Kong allotment. The flood of new money entering the mainland market from retail investors, as well as the relatively small number of high-quality companies, has seen mainland stocks trade at considerable premiums to those listed in Hong Kong.

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