Shares in Xinjiang Xinxin Mining Industry, the country's second-largest nickel cathode producer, more than doubled on their first day of trading yesterday, underscoring investor appetite for mainland resource companies even as the market declined.
In the best debut this year, the stock rose as much as 129.23 per cent, before closing at HK$14.24, up 119.08 per cent from its offer price of HK$6.50. Turnover was heavy at HK$6.06 billion.
For each board lot of 1,000 Xinxin Mining shares allotted in the public offering, investors could have made as much as HK$8,400 if they sold out at the peak of HK$14.90.
'The overwhelming trading performance was well supported by a tremendous demand for Chinese resource companies, H shares and the overall nickel demand,' said a fund manager who bought Xinxin Mining shares through a global offering.
He pointed out that since last month, nickel had been rallying with the three-month price at the London Metal Exchange up 22.6 per cent.
'The recent strong performance of China resource plays was also a positive catalyst,' he said.
China Shenhua Energy, the country's biggest coal firm, and top oil producer PetroChina have surged 12.8 per cent and 15.8 per cent, respectively, since the start of this month.
