New | China’s CRRC surges on first day of trading in Hong Kong and Shanghai

Shares in CRRC, the newly created unit after the merger of China’s two largest train makers CNR and CSR, delivered an upbeat performance in its first day of trading on Monday.

Hong Kong-listed CRRC jumped as much as 13 per cent at one stage before finishing up 5 per cent by the midday break at HK$15.8, while the Shanghai traded shares were suspended after hitting the daily 10 per cent upside limit.

The two locomotive makers merged last year, 14 years after they split from each other to spur competition.

Analysts at Barclays said the newly created company represents more than 90 per cent of China’s railway project, while its global expansion maybe a catalyst to its earnings growth in the future.

The bank has set a target price at HK$17, with an earnings growth of 31 per cent between 2014 and 2017.

Xi Guohua, CNR's former president, will be president of CRRC.