China Coal in 'lacklustre' debut

http://news.bbc.co.uk/go/rss/-/1/hi/business/7221519.stm

Version 0 of 1.

Shares in China Coal Energy Corp have risen 28% on their $3.6bn (£1.8bn) debut on the Shanghai stock exchange.

The performance disappointed some investors, as in some recent Chinese listings companies have seen their share prices double.

Its shares were trading at 21.62 yuan, up 28% from their debut price of 16.83 yuan. The stock had been expected to trade in a range of 26 to 32 yuan.

China is the world's largest producer and consumer of coal.

"China Coal's relatively lacklustre debut reflected the weak stock market and the response to a downgrading of its share price by Goldman Sachs yesterday," said Chen Jinren, senior stock analyst at Huatai Securities.

China's main stock index dropped more than 3% on Friday after enduring its biggest monthly slide in January in more than a decade.

The country has seen a slew of initial public offerings in recent years but there are signs this could slow as equity markets tumble worldwide.