Chinese insurer PICC rises 8% on Hong Kong debut

As PICC makes its market debut, investors in Hong Kong are in desperate need of good news

Shares in the People's Insurance Company of China (PICC) were 8% higher on the firm's debut in Hong Kong despite the tough market conditions.

The state-owned insurer raised $3.1bn (£1.9bn) making it the biggest share sale in Hong Kong in two years.

PICC priced its stock at 3.48 Hong Kong dollars (45 cents; 28p) per share, near the bottom of its indicated range.

Hong Kong has seen fewer and fewer major listings on its once red-hot share market.

PICC, founded in 1949, was the first country-wide insurance company in China.

It has about 130 million individual customers and about 2.4 million institutional clients.

The initial public offering was the biggest in Hong Kong since the $20.5bn listing of AIA Group in 2010.

However, the investment environment has been subdued this year in Hong Kong because of the slowdown in China.

Some companies looking to go public have delayed their planned listings, or dramatically reduced the amount to be raised.

Analysts said the PICC shares were boosted by individual retail investors looking to buy into the insurer after many were shut out of the deal last week.

More on This Story

More Business stories

RSS

Features & Analysis

Elsewhere on the BBC

  • BeesSweet medicine

    Why are sick bees being prescribed honey? BBC Earth investigates

Programmes

  • The smartphone that answers backClick Watch

    Smartphones get smarter – the prototypes that talk and say ouch when you drop them

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.