New China Life surprises with strong Shanghai debut

New China Life Chairman Kang Dian, centre, poses at the Hong Kong stock exchange on December 15
Image caption Shanghai is the world's fourth largest market for new company listings

Chinese insurer New China Life has made a strong start in its Shanghai market debut after a poor performance in Hong Kong a day earlier.

New China Life shares rose 13% to 26.30 yuan ($4.14; £2.66) from an offer price of 23.25 yuan.

The company raised $1.9bn in a dual Hong Kong and Shanghai listing.

Analysts said the company was benefiting from better market sentiment after a recent sell-off on Asian stock markets.

Its Hong Kong shares fell 10% in their trading debut on Thursday but were up slightly in Friday trading.

The Shanghai composite index was trading flat, while Hong Kong's Hang Seng index was up 0.5%.

Chinese companies often seek dual listings as Shanghai's stock market is not fully open to international investment.

Swiss insurer Zurich Financial Services has a 15% stake in New China Life, which is the country's third largest insurer.

China's stock market is down more than 20% this year and this had lead to poor demand for initial public offerings (IPOs) from investors.

Companies listing in Shanghai have raised $15.6bn so far this year, according to data from Dealogic, making it the fourth biggest market for initial public offerings after Hong Kong, New York and London.

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