Investors in China’s newly reopened initial public offering (IPO) market are finding that large deals don’t necessarily lead to big gains, the Wall Street Journal reported Monday. Although all 45 listed companies are trading above their IPO prices, it is companies in the consumption and information technology sectors championed by Beijing, or those that were priced cheaply, that are posting the sharpest gains. China’s biggest IPO this year, that of coal producer Shaanxi Coal Industry Co., which raised 4 billion yuan (US$660 million), is the weakest gainer with a 17 percent increase. Beijing UTour International Travel Service Co., which raised a relatively modest 337 million yuan, is trading at almost three times its IPO price, the report said.
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