WU Yun was all smiles. The chairman of China's Qingling Motors Co yesterday watched his group's shares soar almost 33 per cent on their first trading day in Hong Kong.
The rise was in stark contrast to the 20 per cent share price plunge by Qingling's predecessor Luoyang Glass in maiden dealings just a month ago when the stock market was battered by jitters of interest rate increases and concern over China's soaring rate of inflation.
Qingling shares finished the day up 68 cents at $2.75 after trading as high as $3 when the market opened. Changing hands were 159.88 million shares, accounting for more than 30 per cent of its 500 million H shares issued, and making the counter the most active stock yesterday.
''Judging by the counter's performance, its price-earnings multiple was priced inexpensively,'' said a fund manager of a British house, providing ample room for upside potential.
''The stock is now catching up as other H share counters have been rising,'' he added.
The recovery was sparked by China's announcement of a stable inflation figure and a lower economic growth for the first six months, pointing towards an economic soft landing.
Qingling, as the latest H share offering in Hong Kong by mainland state-owned enterprises, sold its shares at rock-bottom price last month in a bid to save the light truck-maker from experiencing the misfortunes of Luoyang.
