Investors have shrugged off regulatory problems surrounding the listing of Gitic Enterprises to make it the most oversubscribed public offering in Hong Kong stock market history. The offer - which closed yesterday - was about 900 times subscribed, sources close to the issue said. The record-breaking subscription rate beats Guangdong Tannery's record of 667 times and has locked up $90 billion in the banking system. Hong Kong dollar overnight interbank rates soared in response, closing at 5.625 per cent yesterday, up from Wednesday's close of 4.375 per cent. In value terms, the money frozen is below the record $240 billion set by Denway Investment four years ago. The huge response to the issue is the latest indication of the strength of speculative interest in the red-chip sector, shares in which have soared in recent weeks. Although investors are buying on expectation of future asset injections into Gitic by parent Guangdong International Trust and Investment Corp, analysts cautioned its prospects were dogged by recent intervention by the China Securities Regulatory Commission (CSRC). Gitic's $105 million flotation was thrown into serious doubt early this week after the CSRC said it had failed to obtain necessary listing approvals. A source close to the listing sponsors said the listing was unaffected by the saga, saying none of his clients had withdrawn any applications for shares. The grey market price for Gitic shares stood at $3.20 yesterday morning, almost triple its issue price of $1.05. One broker said grey market activity in Gitic died down after red-chip counters tumbled together with the broader stock market yesterday afternoon. HSBC James Capel analyst Alex Fan said Gitic was unlikely to repeat the stellar performance of Shum Yip Investment, which sensationally tripled in price in two trading days after making its debut. He said there was some concern Gitic might encounter difficulties buying assets from its parent. Gitic's assets - a property in Guangdong province and a company that makes and sells marble granite construction materials - present little allure for investors. Mr Fan said the CSRC's latest move had cast a shadow over the red-chip sector, which had surged as investors anticipated sizeable asset injections by a number of parent companies. He said red chips were dumped yesterday because investors were beginning to doubt if they could pull off the injections as easily as before. Gitic's shares will begin trading on the stock exchange on March 26.