Red-chip mania in Hong Kong reached new heights last month with the listing of Shum Yip Investment, the commercial investment arm of the Shenzhen municipal government.
Shenzhen is a Chinese boom town just over the border from Hong Kong and red chips are Chinese companies listed on the Hong Kong stock market.
The heavily oversubscribed offer was priced at HK$1.85 (US$0.24) a share. By the closing bell, the stock had risen 144.59% to close at HK$4.525. Trade in the share outstripped all the other stocks, with just over HK$1 billion of the scrip exchanged, HK$205 million more than for HSBC Holdings.
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