• Thu
  • Dec 18, 2014
  • Updated: 1:40pm

Aoyuan Property, Kingsoft post strong gains on first trading day

PUBLISHED : Wednesday, 10 October, 2007, 12:00am
UPDATED : Wednesday, 10 October, 2007, 12:00am

Shares of two mainland companies gained more than 30 per cent in their Hong Kong trading debuts yesterday as investors poured money into new offerings instead of what many see as an overvalued secondary market.

Guangdong-based China Aoyuan Property Group rose 30.77 per cent, closing at HK$6.80, near the day's high, with HK$2.98 billion worth of shares changing hands.

Kingsoft Corp, a Beijing software and online game firm, surged as much as 51.94 per cent in the morning session before falling back to end the day at HK$5. This was still 38.89 per cent above its offering price of HK$3.60.

'Liquidity is still there in the market,' said Patrick Yiu Ho-yin, an associate director at CASH Asset Management. 'Kingsoft shares performed well, as there are not many listed comparables in Hong Kong. Investors are attracted by the uniqueness of the firm.'

Kingsoft raised HK$768 million from the initial public offering, money it plans to use for acquisitions and to increase its workforce. Aoyuan pulled in HK$3.64 billion to fund existing projects and expand beyond Guangdong, especially in Shenyang.

Meanwhile, shares in sportswear manufacturer China Dongxiang (Group), which will begin formal trading today, rose 26.88 per cent in the grey market, according to Phillip Securities' electronic trading platform. The shares, which were allotted at HK$3.98 each, closed at HK$5.05 after hitting HK$5.10 earlier on PhilipMart, the only Securities and Futures Commission-licensed pre-initial public offering trading platform.

Dah Chong Hong Holdings, a distribution unit of property-to-metals conglomerate Citic Pacific, might price its offering at the top end of its indicative range after Hong Kong retail investors tried to buy more than 200 times the number of shares available to them or more than HK$135 billion worth of subscriptions, market sources said.

The oversubscription will trigger a clawback mechanism which increases to 50 per cent the number of total shares in the retail tranche.

Sporting chance

China Dongxiang is expected to win similar support on its debut

The increase in the sportswear company's shares in the grey market: 27%

Share

For unlimited access to:

SCMP.com SCMP Tablet Edition SCMP Mobile Edition 10-year news archive
 
 

 

 
 
 
 
 

Login

SCMP.com Account

or