Eight Firms Starts Initial Trading at Shenzhen Stock Market
The shares of eight small companies has started trading at the Shenzhen Stock Exchange after raising 4.74 billion yuan in combined assets for their initial public offering which marked the second instance of new listings in the market in just over a year.
The debut of seven manufacturers and an IT company came Friday which listed by valve manufacturer Neway Valve Co. which is the first listing on 14 months. The company surged ahead 43 percent on the first day of trade followed by a 9.98 percent correction. Furthermore china has imposed a moratorium on IPO markets in the late 2012 as part of the efforts in boosting investor confidence amid a decrease in local markets. Part of the said problem was attributed to mispricing of shares and with new stocks surging initially but performed worse in the broader market.
After doing overhauling the market the market has allowed the resumption of IPOs in the late 2013 and in the recent weeks firms were approved and have been slated for new share offerings. As of yesterday these companies have separate filings on the Shenzhen bourse along with their shares go pubic as of today after they raised capital between 308 million to 1.1 billion yuan.
From the eight companies three of these companies will list themselves for small and medium enterprises which are the electric manufacturer Shanghai Liangxin Electrical Co., household appliance manufacturer Guangdong Xinbao Electrical Appliance Holdings Co., and auto parts manufacturer Changzhou Guangyang Bearing Co.
The remaining five will list themselves on the ChiNext board as start ups namely the electric flow meter manufacturer Hangzhou Sunrise Technology Co., machinery manufacturer Chengdu Tianbao Heavy Indsutry Co., drug company Zhejiang Wolwo Bio-Pharmaceutical Co., pharmaceutical equipment producer Truking Technology Ltd., and education service provider Guangdong Qtone Education Co.