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Brokers urging clients to shun Shanghai Petro

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ANALYSTS covering Shanghai Petrochemical's listing on the Hongkong stock exchange have turned their backs on the flotation and are recommending that clients avoid subscribing.

Out of 11 brokerages - none linked to the flotation - questioned yesterday, only one recommended the subscription.

Of the remainder, seven recommended that clients should avoid the subscription, one was neutral and three would make no comment.

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One broker said: ''Hongkong is a pretty lonely place right now for anyone underwriting Shanghai Petrochemical.'' The broker recommending subscription to the issue of 1.68 million H shares, of which some 840,000 could be offered in Hongkong at $1.74, was Kim Eng Securities. No one was available at the brokerage yesterday to comment on the recommendation.

Nomura Research Institute was neutral on the issue, a broker spokesman said yesterday.

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Those making no comment were US-based Morgan Stanley and Hongkong-based Standard Chartered Asia and Wardley James Capel.

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