Shui On Land, a Shanghai-based property developer, gave brokers a surprise - its shares climbed 10.28% on their Hong Kong trading debut Wednesday.
The developer's shares yestoday closed at 5.9 yuan, up 0.55 yuan or 10.28% than the offer price; the turnover reached to 408 billion shares, reffering to 2.33 billion yuan. However, a day earlier, some analysts in sector predicted Shui On shares would fall below their IPO price on their trading debut.
The company's stocks were considered weak before debut due to the Shanghai's pension fund scandal, but their performance yestoday surprised investors. The developer's chairman and CEO Hong Sui Lo said the scandal will urge mainland government to neaten corruption, which support the Shanghai housing market in a long-run, so they will continue to invest in city; wihle, the company has arranged to settle the loan of 875 million yuan involved in the case.
He said the company will be cautious to handle the raising funds and try to get loans from banks of Hong Kong or international insititutes. he believe the cost of raising fund will not be increased.
For the company's projects in Shanghai, Mr Lo said their three great programs are processing according to the schedule; besides, its projects in Kunming of Yunnan province achieved a primary development.