China's Shenzhen Expressway, riding on the euphoria for Shum Yip Investment, soared 53 per cent on its first day of trade yesterday before profit-taking trimmed the gains to 26 per cent.
The H share finished at $2.775, up 57.5 cents from its issue price of $2.20.
A rush of early buy orders, which caused a backlog in executions, pushed the stock to $3.375 in the morning. A total of 340.85 million shares changed hands, about half of the newly issued stock.
Indosuez Asset Management Asia associate director Husan Pai said: 'No doubt the rise is due to how other stocks are performing, with Shum Yip the closest equivalent. Both come from Shenzhen.' Red chip Shum Yip, the Shenzhen government's listed flagship, has almost tripled its share price since its debut on Friday.
Shum Yip and Shenzhen Expressway are the only two Hong Kong-listed companies with Shenzhen backing.
'There will be some upside, given the liquidity running around red chips,' Mr Pai said.
