China's first initial public offering (IPO) since the year-long listing freeze on January 17 received a fervent response from traders whose cheers brought its trading to a temporary halt.
Neway Valve (Suzhou) Co. Ltd., an industrial valve manufacturer, made a strong debut on the board, with its shares on the Shanghai Stock Exchange opening around 20 percent over the IPO price.
Neway continued upward by as much as 31.99 percent in the morning session, prompting a temporary halt to trading according to new IPO rules that set limits for price changes.
At the close of business, Neway Valve ended at 25.34 yuan ($4.19) per share, 43.5 percent over the offering price. The broader Shanghai Stock Exchange dropped 0.93 percent.
"The market response showed investors want new blood in the stock market," said Qin Xiaobin, an analyst with China Galaxy Securities.
For other firms waiting to launch IPOs, Neway's debut was encouraging, but its following price movements will be mainly decided by the firms' strength, Qin noted.
Meanwhile, analysts cautioned that too fast a resumption of IPOs would put a strain on the stock market where liquidity remains tight. |