Stock in third-biggest China insurer up 70 per cent in market debut

Dec 25, 2007, 5:42 GMT

Shanghai - China Pacific Insurance Co, China's third-largest insurer, saw its shares open 70 per cent higher Monday in their first day of trading in Shanghai.

The stock opened at 51 yuan (6.93 dollars), up from its issuing price of 30 yuan.

The Shanghai-based firm raised 4.1 billion dollars in the initial public offering that saw it issue 1 billion A shares on the Chinese mainland's larger stock exchange. China Pacific Insurance also plans an initial public offering (IPO) on Hong Kong's exchange, the official Xinhua news agency reported.

Its market debut comes at a time when Chinese investors are seeking new outlets for their money as the broader market takes a dive.

According to the Bloomberg financial news agency, the 22 Chinese firms that have begun trading since November 1 after carrying out IPOs have seen their stocks rise 59 per cent, far better than the 7-per-cent fall the CSI 300 Index has seen in the same period.

China Pacific Insurance became the third listed Chinese insurer after its bigger rivals, Beijing-based China Life Insurance Co, which raised 3.6 billion dollars in December 2006, and Shenzhen-based Ping An Insurance Co, which brought in 5 billion dollars in February.

The Shanghai exchange produced the most income from initial public offerings in the world this year.