Hong Kong's appetite for new shares has shown little sign of waning, with investors ploughing their cash into luxury department store operator PCD Stores (Group), which debuted on the stock exchange yesterday. The company, owned by chairman Alfred Chan Kai-tai, a controlling shareholder of Hong Kong clothing designer and retailer Ports Design, surged 30.8 per cent above its offer price. It was the most active stock by turnover yesterday, with 1.1 billion shares worth HK$2.62 billion traded, well ahead of China Construction Bank Corp and Bank of China. The resurgence of initial public offerings this year has drawn more than US$29.61 billion from investors. Despite some of these issues failing to perform well, there are at least eight companies waiting to list shares on the exchange by the end of this year. It is not just the stock market. Hong Kong has also seen hot money swamping the property market over the past year - a worrying prospect for government officials who are keen to play down the possibility of an asset bubble forming. Hong Kong Monetary Authority chief executive Norman Chan Tak-lam has said it is important to prevent the stock and housing markets from overheating. Chan said HK$72.5 billion in hot money flowed into the city in the past four weeks, helping to fuel the listing frenzy and finding its way into the property market. Since October 1 last year, HK$640 billion had flowed into the city, he said. This compares with the HK$567.5 billion inflow figure he gave last month. Meanwhile, market observers expect a further spending spree on the mainland, which will benefit the consumer products sector including companies such as PCD. Consultant Bain & Co expects luxury spending on the mainland to grow 12 per cent to US$224 billion this year. Globally, it estimates 15 per cent of the 300 luxury stores expected to open this year will be on the mainland. According to a pre-listing research released by securities company Sun Hung Kai Financial, department stores, among other businesses in the consumer products sector, are expected to stay competitive because of the central government further stimulating domestic consumption. The overall sector gained 17.2 per cent last month, outperforming the Hang Seng Index, which rose only 3 per cent. Yesterday, PCD opened at HK$2.20 and rose as high as HK$2.60 before closing at HK$2.55, gaining 30.8 per cent above its offer price of HK$1.95. However, investors did not have high expectations for the stock before its listing. The stock traded only at HK$1.97 in the grey market on Monday, just 1.03 per cent higher than its offer price, Phillip Securities said. 'It might be a bit surprising if you compare how well the stock was trading [yesterday] with the grey market price,' said Patrick Yiu Ho-yin, the managing director of CASH Asset Management. 'But given that its controlling shareholder has an established record in running Ports, PCD has good potential to grow its earnings in future.' Alfred Chan says he believes ostentatious consumption on the mainland will continue to benefit luxury goods sales. The firm raised HK$2.93 billion to buy premises for new stores and fund a retail, commercial and hotel complex in Xian. Analysts compared the impressive trading debut of PCD with Trinity, the high-end menswear retailer controlled by the parent of Li & Fung, which gained 49.1 per cent on its first day of trading last month.