China's CSCEC shares up 60 pct in Shanghai debut

SHANGHAI, July 29 - Shares in China State Construction Engineering Corp (CSCEC), whose $7.3 billion IPO last week was the world's largest in a year, jumped 60 percent in their listing debut in Shanghai on Wednesday, buoyed by ample market liquidity and heavy investor interest.

Local-currency A shares in CSCEC <601668.SS>, China's biggest homebuilder, kicked off trading on the Shanghai Stock Exchange at 6.70 yuan, up from their IPO price of 4.18 yuan, also supported by the company's leading position in the domestic home construction market and robust overseas business.

The opening price was stronger than market expectations. A Reuters survey of eight industry and stock analysts predicted the firm's A shares would trade near 6.0 yuan on the debut day, up 44 percent from their IPO price. The highest forecast was at 8.0 yuan. [ID:nSHA19293]

CSCEC raised 50.2 billion yuan ($7.34 billion) by selling 12 billion A shares, or 40 percent of its expanded capital, to become China's fourth-biggest IPO ever. [ID:nSHA334861]

It was the second blockbuster listing in Shanghai, following on the heels of Sichuan Expressway's <601107.SS><0107.HK> runaway success on Monday [ID:nSHA182814], since China resumed IPOs last month after a 10-month unannounced suspension. ($1=6.83 Yuan)