[photopress:Jin_Jiang.jpg,full,alignright]Shares of Shanghai Jin Jiang International Hotels jumped as much as 95% in its Hong Kong trading debut after the initial share sale of China’s largest hotel operator. The stock price closed at HK$3.81 (49 US cents) in Hong Kong, 80% more than the offer price of HK$2.20, which is about 30 times the firm’s estimated per-share earnings for this year.
Tat Auyeung, who helps manage about US$400 million in Asia stocks at Apex Capital Management in Hong Kong, said, ‘People are buying potential. Investors are comparing Jin Jiang’ to Shanghai-based Home Inns & Hotels Management whose shares have jumped 150% since listing on the Nasdaq on October 26. Tat Auyeung said, ‘Jin Jiang is like Home Inns, but bigger. So people are just putting the two together.’
Source: Shanghai Daily