Two Chinese IPOs see mixed results

Two IPOs by Chinese firms in mining and infrastructure are seeing mixed outcomes, amid falling investor confidence and a slowing economy, The Wall Street Journal reported. Citic Heavy Industries’ (601608.SH) shares rose 0.6% at mid-day following their Friday listing in Shanghai, but lacked the first day jump investors look for in IPOs. Meanwhile, Inner Mongolia Yitai Coal priced its Hong Kong offering at HK$43, the low end of its range. The IPO, slated for listing Thursday, would raise US$903 million in the second largest offering in Hong Kong since Haitong Securities’ offering in April. Both companies fortunes may have been hurt by the China’s central bank announcement to cut interest rates Thursday, which raised fears that further poor economic data would be released. The two firms have pushed ahead with their IPOs despite that other public mining and infrastructure firms have seen significant declines in share price this year.