China's Guotai Junan Securities shares soared 44 percent in their Shanghai debut on Friday after the company raised 30.1 billion yuan ($4.85 billion) in the country's biggest initial public offering (IPO) in five years.
The country's third-largest brokerage by profit saw its stock open at 28.38 yuan – up from their IPO price of 19.71 yuan.
The performance of the stock reflects the "herd mentality" of Chinese investors, Francis Lun, chief executive officer of Hong Kong brokerage Geo Securities, told CNBC. "That's typical of Chinese markets. You have an issue and everybody jumps on it."
The debut comes amid a highly volatile period for Chinese equities, which suffered their biggest weekly loss since the depths of the Global Financial Crisis last week. The slumped over 3 percent at the start of trade on Friday.
The broader declines in the mainland stock market is in part due to a slew of IPOs sapping liquidity.
"There's a big number of IPOs coming onto the market, that's certainly taking away liquidity. I wouldn't be surprised to see the market consolidating for some time," Audrey Goh, senior investment strategist at Standard Chartered, told CNBC. "4,400 and 4,200 are two key support levels for the Shanghai Composite, failure to find support at these levels will signal further consolidation ahead." The index last traded at the 4,403 level.
China's IPO market has been on fire this year as mainland firms look to capitalize on robust investor demand.
Chinese companies have raised $39.4 billion from IPOs so far in 2015, more than double the $17.9 billion raised in the same period last year, according to Dealogic.
State-owned Guotai Junan plans to use the proceeds to broaden the financial services it provides, expand its asset management business and improve its underwriting capabilities, among other initiatives, according to Reuters.
Guotai Junan Securities trades under the ticker symbol of 601211.SS.