China Merchants Securities, the country's eighth largest brokerage by assets, made a flat Hong Kong debut on Friday as worries about volatile mainland stock markets and debt levels at mainland Chinese financial institutions hang over the sector.
The lackluster first day of trade comes after its $1.4 billion share offering met with tepid demand, pricing slightly below the middle of its indicative marketing range.
At its offering and latest trading price of HK$12.00, the company has a market value of about $15 billion. It plans to use part of proceeds from the new share issue to expand overseas, said Gong Shaolin, company chairman, at the listing ceremony.
"Chinese companies going global has become a trend. Our listing today is an important step for us to expand abroad further," he said.
Like other mainland rivals, the brokerage controlled by state-owned conglomerate China Merchants Group, is having a tough year.