Shares in the Industrial Bank, China's 10th largest commercial bank, opened at 24.8 yuan (US$3.2) on their Monday debut on the Shanghai Stock Exchange.

 

The opening price was 55.19 percent higher than its initial public offering (IPO) price of 15.98 yuan (US$2), but below market expectations of 30 yuan (US$3.9).

 

The bank first experienced a nervous moment as its shares dropped to 23.25 yuan (US$3) within an hour of the opening, but they rebounded slightly.

 

The weak performance of the Industrial Bank shares follows last week's 7 percent plummet of the Shanghai stock market.

 

The benchmark Shanghai Composite Index slumped more than 4 percent to close at 2,673.21 points on Friday.

 

The Industrial Bank has reported a record 1.16 trillion yuan (US$149.5 billion) in registration capital in its IPO, topping previous records set by China Life and the Industrial and Commercial Bank of China.

 

The Industrial Bank has raised nearly 16 billion yuan (US$2.1 billion) from the issue of 1.001 billion renminbi-denominated A-shares on the Shanghai bourse.

 

Gao Jianping, the bank's chairman, announced the funds would go toward boosting capital adequacy ratio as well as strengthening its risk prevention capability and profitability.

 

(Xinhua News Agency February 5, 2007)