China Permits First IPO Since September; Brokers Gain
China approved its first initial public offering since September, triggering gains in brokerage shares on speculation the ending of the 10-month moratorium will spur fee income and trading.
Citic Securities Co., China’s largest brokerage by market value, and second-ranked Haitong Securities Co. advanced in Shanghai trading after Guilin Sanjin Pharmaceutical Co. said its IPO will go ahead.
The Shanghai Composite Index has jumped 58 percent this year, reassuring regulators that the market can withstand the increased supply of stock. The China Securities Regulatory Commission stopped allowing public offerings in September after the stock market had plunged 60 percent since the start of 2008.