CHINA: Shares in China Cinda surge as much as 24 percent in their trading debut in Hong Kong
Record ID:
858120
CHINA: Shares in China Cinda surge as much as 24 percent in their trading debut in Hong Kong
- Title: CHINA: Shares in China Cinda surge as much as 24 percent in their trading debut in Hong Kong
- Date: 12th December 2013
- Summary: HONG KONG, CHINA (DECEMBER 12, 2013) (REUTERS) CHINA CINDA ASSET MANAGEMENT CO LTD CHAIRMAN AND EXECUTIVE DIRECTOR, HOU JIANHANG, AND OTHER COMPANY CHAIRMEN ON STAGE WITH GONG SCREEN WELCOMING CINDA LISTING TO HONG KONG STOCK EXCHANGE VARIOUS OF HOU STRIKING GONG HOU HOLDING GONG STICK VARIOUS OF SCREEN SHOWING SHARE PRICE AT OPENING HOU WALKING REPORTER WRITING (SOUNDBITE) (Mandarin) CHINA CINDA ASSET MANAGEMENT CO LTD CHAIRMAN AND EXECUTIVE DIRECTOR, HOU JIANHANG, SAYING: "This is the market reaction. This kind of thing depends a lot on the changes in the market. I hope we will perform better and better and bring even better returns to our shareholders." VARIOUS OF CINDA EXECUTIVES ON STAGE HOLDING CHAMPAGNE (SOUNDBITE) (Mandarin) CHINA CINDA ASSET MANAGEMENT CO LTD CHAIRMAN AND EXECUTIVE DIRECTOR, HOU JIANHANG, SAYING: "When we manage bad loans we adopt a cautious attitude. We make provisions according to the business needs." HONG KONG STOCK EXCHANGE VARIOUS OF STOCK BOARD SHOWING HANG SENG INDEX PRICE TRADER ON COMPUTER EXCHANGE FLOOR BEIJING, CHINA (DECEMBER 12, 2013) (REUTERS) EXTERIOR OF CINDA HEADQUARTERS CINDA SIGN IN ROMAN LETTERS ON TOP OF BUILDING CINDA WRITTEN IN ROMAN LETTERS AND CHINESE CHARACTERS ON TOP OF BUILDING MAN DRIVING TRICYCLE TO FRONT OF BUILDING MAN WALKING INTO BUILDING CINDA WRITTEN IN CHINESE CHARACTERS ABOVE DOOR
- Embargoed: 27th December 2013 12:00
- Keywords:
- Location: Hong Kong, China
- City:
- Country: Hong Kong
- Topics: Business,Economy
- Reuters ID: LVAC0D680FSMCJXZJD8LLHG2EAQ7
- Aspect Ratio:
- Story Text: Shares in China Cinda Asset Management Co Ltd surged as much as 24 percent in their trading debut on Thursday (December 12), boosted by heavy demand from retail investors - a major success for China's first attempt to list one of its four bad debt managers.
By 0140 GMT, Cinda shares were trading at HK$4.35, off the morning's high of HK$4.43 and which compares with its IPO price of HK$3.58. The stock debuted at HK$4.40.
Cinda's strong start after a $2.5 billion offering has brightened up an otherwise dim IPO market for Hong Kong this year.
"This is the market reaction. This kind of thing depends a lot on the changes in the market. I hope we will perform better and better and bring even better returns to our shareholders," Cinda's Chairman and Executive Director, Hou Jianhang, told reporters at the listing ceremony at the Hong Kong Stock Exchange.
One of four asset management companies that Beijing established in 1999 to absorb toxic assets held by the China's four biggest banks, Cinda is the most profitable and the first to seek a listing.
In addition to being taken up by marquee global investors, such as Oaktree Capital Management Ltd and Och-Ziff Capital Management Group LLC, Cinda's IPO was swamped by orders from small investors.
Investors are betting that soured loans will be a growth business as China's economy slows.
The retail portion generated more than 161 times demand than the shares on offer, resulting in that allocation being lifted to 20 percent from 5 percent. The institutional tranche of the IPO was also "significantly oversubscribed".
"When we manage bad loans we adopt a cautious attitude. We make provisions according to the business needs," Hou said.
The IPO was the largest in the Asia-Pacific region, excluding Japan, since the $3.6 billion listing by People's Insurance Group of China Co Ltd (PICC) in November 2012. - Copyright Holder: REUTERS
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