China’s PSBC makes tepid debut on Hong Kong bourse

AFP, HONG KONG: Postal Savings Bank of China (PSBC) made a low-key debut on the Hong Kong bourse yesterday, despite notching up the world’s biggest IPO in two years aimed at expanding the business.
China’s fifth-biggest lender raked in a colossal $7.4 billion in the flotation, with a report in the Chinese language financial news portal Caixin saying a fund linked to investment guru George Soros was among the initial investors.
But the firm’s first day of trading saw it post a tepid rise in the morning session with analysts saying the muted response was expected, due to the glut of options in Chinese banking.
“We have already got a lot of Chinese banks in the market. The ones (already) publicly traded are cheaper,” said Jackson Wong, associate director of Hong Kong-based Simsen Financial group.
Because of this, he said there was a “limited upside” for newly-listed Chinese banks.
Selling pressure would also be low, as investors tended to hold Chinese bank shares long-term, he added.
Shares in the company ended Wednesday’s trading at HK$4.77, from its HK$4.76 listing price, while the wider Hang Seng Index traded up 0.2 per cent .

Chinas PSBC makes tepid debut on Hong Kong bourse

AFP, HONG KONG: Postal Savings Bank of China (PSBC) made a low-key debut on the Hong Kong bourse yesterday, despite notching up the worlds biggest IPO in two years aimed at expanding the business. Chinas fifth-biggest lender raked in a colossal $7.4 billion in the flotation, with a report in the Chinese language financial news portal Caixin saying a fund linked to investment guru George Soros was among the initial investors. But the firms first day of trading saw it post a tepid rise in the morning session with analysts saying the muted response was expected, due to the glut of options in Chinese banking. We have already got a lot of Chinese banks in the market. The ones (already) publicly traded are cheaper, said Jackson Wong, associate director of Hong Kong-based Simsen Financial group. Because of this, he said there was a limited upside for newly-listed Chinese banks. Selling pressure would also be low, as investors tended to hold Chinese bank shares long-term, he added. Shares in the company ended Wednesdays trading at HK$4.77, from its HK$4.76 listing price, while the wider Hang Seng Index traded up 0.2 per cent .