COSCO's poor IPO debut

In their first day of trading on the Hong Kong Stock Exchange, China COSCO Holding shares performed poorly, closing at US$0.49, off 9.9% from their IPO price of US$0.55. Concerns over container-shipping profits dampened investor demand, and the stock was considered expensive compared with other HK-listed shippers. After the stock's poor showing, some investors might now view COSCO as a bargain, with a solid prospective dividend yield of about 5%, analysts said.