Small rise forecast for insurer in wake of CSCL's dismal start Shares of Ping An Insurance (Group) are expected to see a small gain on their debut today - in contrast to the 26 per cent first-day rise for China Life Insurance last year. Market observers said the dismal debut trading of China Shipping Container Lines (CSCL) had unnerved investors. CSCL fell 11.81 per cent on its debut last Wednesday and is now trading 16.53 per cent below its issue price. A broker with a European house advised his clients to 'sell at any gain' in Ping An, citing the counter's pricey valuation. Ping An shares were priced at $10.33 each, slightly below the middle of the range, but still more expensive than China Life in terms of both price-earnings and price-to-embedded-value. But some argue China Life deserves a discount to Ping An, given the unresolved legal action against the insurer in the United States for pre-listing accounting and operating irregularities of its parent. In addition, the fact Ping An would soon be included in the Morgan Stanley Capital International and H-share indices would give buying support and prevent a heavy sell-off of the shares today, one broker said. He expects to see a gain of about 5 per cent for Ping An. CLSA also does not expect too much upside on the stock. In an email note to clients, it said: '[Ping An] is for investors with a positive view on the interest-rate outlook. [We maintain] this is more of a trading stock than one for buying and holding at this stage.' However, 'if the after-market reaction is positive, an initial target of $12.04 could be achievable', it said. Ping An's debut is expected to garner a lot of attention from its shareholders and other market observers. 'It will give some guidance on timing and pricing for the upcoming bigger Chinese IPOs such as China Minsheng Banking, China Power International and China Construction Bank,' one investment banker said. Investor sentiment on new issues has cooled, again, after the disappointing debut of CSCL and the call-off of CSMC Technologies Corp's planned IPO. Market talk suggests the response to the offering of Dah Sing Banking Group was lukewarm but one source said the placing tranche of Dah Sing was already covered. The impact on new issues of smaller size, however, would be less apparent, 'as the market could absorb these smaller ones', said William Lee, the chief operating officer at Tai Fook Securities. Mitsumaru East Kit, a one-stop solution provider to coloured television and other audio-visual equipment makers, is planning to raise between $105 million and $121 million by floating 100 million new shares on the main board on July 15, according to market sources. They said book-building started yesterday and would close on July 7. The public offer will open next Wednesday. First Shanghai Capital is arranging the deal.