China International Capital Corporation overcame a soft market with an opening bounce on its stock market debut in Hong Kong after the Chinese investment bank cut the size of its initial public offering by nearly a fifth to raise $811m.
Shares in CICC, formed 20 years ago as a joint venture between Morgan Stanley and China Construction Bank, were priced at the top of the range. They were up 9.5 per cent in mid-morning trading on Monday at HK$11.26, after touching a high of $11.38.
The debut coincided with an upturn in shares of mainland-based brokers following Beijing’s decision on Friday to resume IPOs after a four-month halt, which should give their revenue a boost. Citic Securities, the leader in mainland league tables, was 3 per cent higher in Hong Kong.