Everbright Bank up 8.7% on Shanghai trading debut

China Everbright Bank (601818.HK) opened at RMB3.37 (US$0.50) on its first day of trading in Shanghai, up 8.7% on the price of its initial public offering, Reuters reported. The mid-sized lender sold 6.1 billion shares in the offering, possibly rising to 7 billion if it exercises its over-allotment option. This means the bank could raise as much as US$3.2 billion. A modest debut for the stock was always likely, following a raft of government measures intended to assuage fears that the banking sector is on course for a potential surge in non-performing loans. Lenders have been ordered to conduct stress tests related to their mortgage lending and also move off-balance-sheet loans back on to their books. Analysts predicted a 5% first-day gain for Everbright. State-backed institutions would be expected to buy heavily if the stock looked like it were falling below its offering price.