China Telecom Corporation rose 34% on its Shanghai debut, challenging a bearish market after raising $7.3 billion in the listing this year, according to a report by Reuters on Friday.
- Shares of the Chinese telecom giant that is blacklisted by the U.S government because of links to the Chinese military opened 5.7% higher and increased the exchange’s 44% limit on new shares.
- The stock closed the session at 6.11 yuan, up from an offer price of 4.53 yuan, in an increase that was knowledgeable in a weak market that saw China’s blue-chip index drop close to 2%.
- The rally was hardly driven by fundamentals as China Telecom’s Hong Kong-listed shares dropped close to 5%, trading at just half of the price of their Shanghai counterparts.
China Telecom’s debut comes days after the company posted a 27.2% increase in its first-half earnings. The company also promised to raise the cash dividend ratio to 70% or higher in the next three years of its listing. China Telecom Corp. down -4.78%