China Stocks Rest; Everbright IPO

123jump.com Staff
05 Aug, 2009
New York City

Hong Kong and Shanghai indexes edged lower. Everbright Securities initial public offering was oversubscribed more than 100 times. China Railway Construction garnered orders worth $700 million.

[R]8:00 PM Hong Kong – 8:00 AM New York – Hong Kong and Shanghai indexes edged lower. Everbright Securities initial public offering was oversubscribed more than 100 times. China Railway Construction garnered orders worth $700 million.[/R]

Stocks in China decreased as Shanghai Mayor Zheng warned that the city will take steps to cool real estate market.

Hang Seng index in Hong Kong decreased 301.66 or 1.45% to 20,494.77 and CSI 300 index in China lower 45.68 or 1.21% to 3,740.94

Gainers & Losers

Everbright Securities completed its initial offering of 520 million shares to investors at 21.08 yuan each and raised 11 billion yuan or $1.6 billion. The institutional tranche of 179 million was oversubscribed by 116 times and retail tranche of 341 million was oversubscribed 124 times.

The first brokerage initial public offering in seven years was priced at 69 times earnings.

China Railway Construction Corp increased 2.5% to 10.88 yuan after the company was awarded order of 2.17 billion yuan for a railway in Chengdu and 3.5 billion yuan order to build schools in Saudi Arabia.

Jiangxi Copper Company decreased 2.2% to 46.60 yuan and Western Mining Company decreased 2.7% to 19.20 yuan.

Poly Real Estate decreased 2.7% to 26.44 yuan after Shanghai Mayor Han Zheng said the city will act to dampen property speculation.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 122.48 or 1.18% to 10,252.53, Hang Seng index in Hong Kong decreased 301.66 or 1.45% to 20,494.77 and CSI 300 index in China lower 45.68 or 1.21% to 3,740.94. ASX 200 index in Australia decreased 44.80 or 1.04% to 4,264.50. The FTSE Bursa KL Composite index in Malaysia closed lower 0.39 or 0.03% to 1,179.49.

The Kospi Index in South Korea decreased 6.90 or 0.44% to close at 1,559.47. SET index in Thailand closed lower 1.07 or 0.17% to 640.16 and JSE Index in Indonesia decreased 43.03 or 1.82% to 2,317.06. The Sensex index in India increased 72.85 or 0.46% to 15,903.83.