China Everbright Bank(6818.HKG, 601818.SHA), which raised US$3 billion in Hong Kong’s biggest IPO this year, fell on its first day of trading, The Wall Street Journal reported. On Friday, the bank’s first day of trading in Hong Kong, the stock fell as much as 5% before closing at US$0.51, down 2.8% from the IPO price. Investors said earlier that Everbright Bank’s price, at less than book value, made the IPO relatively cheap, but also noted that they remained wary of how low levels of bad debt really were in the Chinese banking system, where non-performing loans are less than 1% of total loans.
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