CCB Successfully Listed in the A-Share Market

CCB was successfully listed in the Shanghai Stock Exchange on September 25th, representing the largest current IPO project in China in terms of capitalisation.

In the morning of September 25th, on the trading floor of the Shanghai Stock Exchange, CCB chairman Guo Shuqing hit a gong to signal the start of trading.  As soon as the clear sound of the gong faded, the giant panel in the trading floor showed an opening price of 8.55 yuan for CCB.  During the course of the day, the bidding price had gone as high as 9.05 yuan but had gradually eased back to a closing price of 8.53, which was a 32.25% increase over the issue price.

After its successful landing in the A-share market, CCB will become another stabilising icon in China’s domestic capital market, symbolising a major step forward in the reform and development of China’s banking industry and its capital market.  Pundits are of the opinion that, with CCB’s excellent profitability level and the size of its stock issuance, its listing will have significant impacts on the A-share market and it will be influential in improving the structures of listed companies and in the raising of the quality of all listed companies.  CCB’s listing in the A-share market at this juncture is likened to an injection of fresh blood to the domestic capital market.  Not only will it alleviate to some extent the froth of blue chip stock, but it will provide investors with yet another important investor wind vane, which is of paramount importance in the long-term healthy development of the A-share market.  In addition, CCB's home-coming has also set a good example for the issue of home-coming of red-chip stocks now under discussion.

Both as a pioneer in the transformation of China’s banking industry and as a lead runner in the reformation of China’s financial system, CCB has always committed to creating the best returns to its shareholders.  In the A-share listing ceremony, Guo Shuqing said that CCB’s share price is but a result of market behaviours.  The quality of a bank lies in its core competitiveness, profitability, value creating ability and, most important of all, in its customer service capabilities.  In this last respect, according to him, Chinese banks including CCB are still lagging behind international world-class banks.  He believes that the newly raised capital will give CCB new momentum.  Since 99% of CCB’s income comes from the mainland, its listing in the mainland is especially meaningful in terms of its utilising the domestic capital market in replenishing its capitals, in continuing its reformation, in implementing strategic restructuring and in building a better image in its customers.