Shares in Postal Savings Bank of China have made a flat debut in Hong Kong after the state-owned lender raised $7.4 billion in the world's biggest initial public offering in two years, pricing the deal near the bottom of its marketing range. Tara Joseph reports.
Ready, set, trade. The world's biggest IPO in two years debuting on Hong Kong's stock exchange on Wednesday. But the excitement quickly fizzled out. Postal Savings Bank of China opening flat after raising 7.4 billion dollars. Hopes had been high for this IPO as a way to re-boot investor appetite for Chinese companies going public. PSBC has a network of more than 40-thousand branches and less of a bad debt burden than many of China's other state-owned banks. But from the lukewarm start... it seems many investors can't kick their fears about Chinese banks.. (SOUNDBITE) (English) JASPER LAWLER, ANALYST, CMC MARKETS, SAYING: "One interesting element to this ipo is that the Chinese backed firms have taken a particular large stake of this IPO. That's a bit higher than normal, normally it is under 50 percent. And also from an investment perspective you also have that much less control over the company, maybe more state influence than you perhaps like." Overall it's been a skittish year for public offerings around the world. Only 64 companies have gone public in the U.S. so far this year - half the number of 2015. .... although there have been a few bright spots - like India, where the IPO market has been on a roll. China has been one of the world's biggest IPO gravy trains for the past several years... With huge companies opening up to global investors. But in the face of China's slowdown... ...its now harder now to whip up same kind of excitement for big Chinese firms listings.... despite the champagne debuts.