Shares of China Everbright Bank fell by as much as 5 percent in their debut on the Hong Kong stock exchange on Friday, as investors balked at the high issue price amid ongoing concerns about China's bad debt problems.
China's 11th biggest bank by market capitalization, which raised $3 billion in the city's biggest initial public offering (IPO) this year, saw its stock fall to as low as 3.78 Hong Kong dollars ($0.48) in early trade, versus its listing price of 3.98 Hong Kong dollars. The benchmark Hang Seng was down about 0.3 percent in comparison.
The shares were priced at a premium to their Shanghai-listed shares, which closed at 2.78 yuan on Thursday, or 3.55 Hong Kong dollars.
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"I think it's probably been mispriced. That's normally what happens when highly marketed and anticipated IPOs come to market," Clay Carter, head of international equities at Perennial Investment Partners, told CNBC.
"I think it will remain under selling pressure for a while because the allocation is too generous. People may have too many shares so they may unload," added Alex Wong, director at Hong Kong-based Ample Capital.