China Citic Bank Debuts

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stlplace
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Like Baidu, if you look at 601998 (its ticker symbol) at Sina Finance. For english readers, read Bloomberg news here. BTW, 1998 is a good number in Chinese. Citic Bank (中信银行) IPO was priced at 5.80 Yuan, and people expected it to open between 7 and 8, based on PE and PB (price book) ratio of other Chinese banks. But it went up as high as 12 this morning (Apr 27 Shanghai). This is much higher than the H share traded in HK (0998). Based on 2006 earning of 0.12 Yuan, the PE is about 100.

I can think of two reasons: this is a bull market; and this is Citic 中信, a very well known name in the Chinese business world. Its debut remind me the Baidu’s story: priced at $27, opened at $70, went up as high as $140 in the first day. I thought Baidu’s IPO happens only once in life. Well, not quite. Don’t know what will happen in the Bank of Communcations’ IPO (May 15)

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