First major IPO in Hong Kong after market turbulence

The first major IPO in Hong Kong of a Chinese company since the beginning of market turbulence take place today, but it was met with great interest from investors. The shares of state-owned China Railway Signal & Communication Corp (CRSC) gained 1.42 billion HKD on the stock exchange in Hong Kong after the IPO. They traded around its original price of 6.30 HKD per share, moving in a narrow range of 6.29 to 6.38 HKD to finish with a price of 6.32 HKD. The company presented worse than the benchmark Hang Seng Index, which ended with an increase of 0.7%.

Typically, investors would be eyeing the primary offering, as they regularly wear high profits, but Chinese shares met a negative mood due to recent market crashes. As part of the stabilization mechanism, the Chinese authorities have suspended IPOs, which may cause some companies to focus on the stock exchange in Hong Kong. It is not yet clear when this measure will be lifted. The company, which provides engineering and maintenance of railway signaling and communications systems, is the largest one in the world. She offered to exchange 20% of the enlarged capital. This is the fourth largest IPO this year until now.