The unfortunately timed debut of China Telecom (Hong Kong), Asia's biggest flotation outside Japan, surprised no one yesterday when the shares dropped below their issue price immediately after opening.
Shares in the red chip, which two weeks ago looked set to reap quick gains for its investors, dropped as low as $9.50 before recovering to close at $10.55 - about 10 per cent below the $11.68 issue price.
The listing, which raised $35 billion, was the first by a big red chip in recent memory not to provide investors with immediate gains.
While the stock exchange viewing gallery was as crowded and busy as it was for the debut of Beijing Enterprises Holdings, yesterday's atmosphere was decidedly more sombre.
Both the company and its bankers tried hard last night to put a brave face on the day.
'The overall performance is okay, given the market plunge,' China Telecom vice-chairman Hu Wangshan said.
