THE A shares of Northeast Electrical Transmission & Transformation Machinery Manufacturing Co (Nemm) rose 14 per cent on their debut on the Shenzhen stock exchange yesterday.
China's largest transformer maker closed at 5.93 yuan (about HK$5.50), up 73 fen on its issue price of 5.20 yuan and marginally from its day's low of 5.90 yuan. It hit a high of 6.40 yuan as the Shenzhen A-share index fell 1 per cent. Turnover in Nemm was heavy, with 18.68 million shares traded, representing 62.26 per cent of the 30 million shares sold to the public last month.
Turnover value was 114 million yuan, more than a third of the overall 295 million yuan.
Nemm's 156 million yuan share offer was 17.56 times subscribed. The shares opened for subscription two weeks ago in a nationwide sale through computer stations linked to the Shenzhen exchange.
Nemm, which began trading H shares in Hong Kong in July after raising HK$446.3 million, is the first H-share company to list A shares in Shenzhen.
Previous A-share listings by H-share companies took place in Shanghai, apparently attracted by the higher liquidity and market representation.
Analysts are closely watching Nemm's A shares for positive signs of the Shenzhen market.
