Investing.com - State-owned lender Postal Savings Bank of China (PSBC) traded slightly higher on Tuesday on its first day of trading in Shanghai.
The stock rose as much as 2.7% in morning trade, but the gains narrowed to just 1.0% near noon. The bank sold its shares at 5.5 yuan apiece and is expected to raise as much as 32.7 billion yuan ($4.6 billion), making it the largest listing in China since 2010.
In China, initial public offering shares are seen as safe bets as most IPOs jump at least 30% on the first trading day,
Chinese regulator imposed a valuation cap on IPOs in 2014. Which ended with this year’s launch of the STAR board in Shanghai.
“The announcement was aimed at bolstering investor confidence,” said Zhou Ling, a hedge fund manager at Shanghai Shiva Investment in a South China Morning Post report. “But investors are shunning bank stock nowadays and it is still likely that the shares would crash below the offering price in the coming trading days.”
PSBC is the largest Chinese bank by branch network. It was granted a banking license in 2007. The lender was already listed in Hong Kong. Its H shares were largely unchanged on Tuesday.