China Literature surges past 11 top Hong Kong firms in market value after only a day’s trading
With a market capitalisation of US$12 billion at the end of its market debut day, the Tencent unit is more valuable than famous names like Cathay Pacific and Lenovo
China Literature’s 86 per cent surge on its share trading debut has propelled the market value of mainland China’s largest online publishing and e-book website above that of several much better known Hong Kong listed companies.
Shares in the unit of internet giant Tencent closed at HK$102.4, giving it a market capitalisation of HK$92.8 billion (US$11.9 billion). It touched a daily high of HK$110 earlier in the morning, doubling its IPO offer price of HK$55, while 143 million shares changed hands during the day worth a total of HK$14 billion.
The stellar debut means it has leapfrogged 11 of the 50 blue-chip stocks on the Hang Seng Index, including well-known names airline Cathay Pacific and computer firm Lenovo, as well as Hong Kong property developer Sino Land; dairy product maker China Mengniu Dairy; Want Want China, the country’s largest rice cracker and flavoured milk producer; Hang Lung Properties; electricity producer China Resources Power; conglomerate China Merchants Port; Swire Pacific; state-owned coal producer China Shenhua Energy, and Kunlun Energy, the natural gas distribution arm of PetroChina, according to data compiled by Et Net, a financial information provider.