Sanjin, Wanma Halted in Shenzhen After Surging on Trading Debut

From Bloomberg:

China’s first two companies to go public in nine months surged on their trading debuts, triggering stock suspensions under a new system aimed at curbing speculation.

Guilin Sanjin Pharmaceutical Co. and Zhejiang Wanma Cable Co. were halted on the Shenzhen exchange after jumping 20 percent from their opening prices. Both stocks resumed trading after a 30-minute suspension.

The gains underscore demand for new equity in a nation where households wield $3.6 trillion in bank savings and cast doubt on the effectiveness of the government’s attempts to prevent excessive first-day price swings. The China Securities Regulatory Commission halted initial public offerings in September and revised pricing rules last month, after companies that went public in 2008 gained an average 152 percent on debut.

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