Everbright shares shine

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Everbright shares shine

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A bumper debut for shares of China Everbright Bank.

On their first day trading on the Shanghai stock market they jumped 18 percent.

The initial public offering of shares raised 2.5 billion euros.

Everbright’s debut was in stark contrast to the Agricultural Bank of China which launched the world’s biggest IPO in mid-July; its shares have been lacklustre ever since.

Analysts said investors are more optimistic about the smaller Chinese banks and their strong earnings reports.

In addition Everbright’s shares were priced lower than many of its peers.

The bank’s offering came in market conditions significantly different from just over a month ago when AgBank launched its IPO. The Shanghai stock index has risen 10 percent in the period.

Everbright’s positive result bodes well for other lenders that are lining up to ask investors for tens of billions in additional funds to shore up their balance sheets after a lending binge last year left their reserves depleted.