Shares of New China Life Insurance Co Ltd jumped nearly 14 percent on the first day of trading in Shanghai on Friday, bucking a dismal debut in Hong Kong a day earlier in a sign that mainland investors are more optimistic about the country's third-biggest life insurer.
The insurer, 15 percent owned by Swiss insurer Zurich Financial Services AG, closed the day at 26.44 yuan, compared with its Shanghai IPO price of 23.25 yuan, which was fixed at the bottom of an indicative range.
The rise was partly aided by a 2 percent rebound in China's main stock index that was fuelled by speculation of government support. In contrast, New China Life shares traded in Hong Kong gained 2.1 percent after falling 10 percent on their debut on Thursday. New China Life, which is in desperate need of fresh capital, is braving a volatile stock market rocked by growing concern over the global economy and the euro zone debt crisis.
The insurer, controlled by the Chinese government, raised $1.9 billion in a dual listing in Hong Kong and Shanghai. It raised 3.69 billion yuan ($578.96 million) in the Shanghai leg after selling 158.8 million shares.
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