Update | China’s ZhongAn Online jumps 15pc in Hong Kong trading debut

Shares in ZhongAn Online, China’s first internet-only insurer, surged by as much as 18 per cent in their trading debut in Hong Kong on Thursday, in what was the city’s first major fintech listing that may pave the way for further IPOs by start-ups.

The stock closed the day 9.2 per cent ahead at HK$65.20 after hitting a high of HK$70.50. The initial public offering was priced at the top end of HK$59.70 per share.

ZhongAn Online Property and Casualty Insurance raised US$1.5 billion, making it the biggest IPO in the city since Guotai Junan raised HK$16 billion (US$2.05 billion) in April. The company is offering 199.3 million shares with 20 per cent for public offering and the rest for institutional investors, particularly overseas investors.

“Technology and the internet are changing the world. We believe ZhongAn’s IPO in Hong Kong will give confidence to other players in the fintech industry and give a boost to Hong Kong’s status as an international financial hub,” said ZhongAn CEO Chen Jin.

Hong Kong aims to diversify its mix of constituent company listings, given the fact that 56 per cent of the funds raised in the first half were by financial firms, and less than 1 per cent from new economy or technology firms.

Last month, Hong Kong Exchanges and Clearing (HKEX) completed a consultation to set up a new board to allow listings by companies with dual-class share structures and start-ups, although many industry observers consider the planned start-up market is a risky strategy.

“We hope ZhongAn’s IPO will be the beginning of a round of new economy companies choosing Hong Kong as their listing venue,” said Charles Li, CEO of HKEX. “We are working hard trying to attract other new economy companies, such as biotech companies and life science companies.”