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>> Bank of Beijing
On first day of trading Bank of Beijing stock rises 81% 20 September 2007
The stellar debut came after China’s largest city bank raised 15 billion yuan (US$2 billion) from selling 1.2 billion new Class A shares at the top of its indicative price range. “The near-term prospects of China’s banking sector are very strong due to the robust economy,” said industry analyst Wu Yonggang at Guotai Junan Securities. “Bank of Beijing will enjoy relatively faster growth among its peers partly because it is located in the Chinese capital and its business will be buoyed by next year’s Olympic Games.” “When you have such optimistic market sentiment and so much liquidity, stocks are bound to skyrocket,” said Zhu Minjian, a banking analyst at Fortis Haitong Investment Management, whose holdings include 9.8 million Bank of Beijing shares. “Valuations on the secondary market are certainly at a high, if not unsustainable, level. So IPOs become a safe haven.” Bank of Beijing is the third of China’s 113 city-commercial banks to go public. |
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