Stocks News
- Northeast Securities shares soar on debut
Date: 28-Aug-2007 Sources: (Shenzhen Daily)
SHARES of Northeast Securities Co., the second brokerage to go public by buying control of another firm, yesterday soared on the first trading day after a seven-month suspension of its stock.
The firm's shares jumped almost sevenfold to a record 59.77 yuan (US$7.91) on the Shenzhen Stock Exchange before closing 216.4 percent at 51.70 yuan.
The firm's stock traded at 16.34 yuan Jan. 24 before trading was halted and the stock was split in a sale of additional shares.
Northeast Securities took over Shenzhen-listed Liulu Industrial Co. and renamed it to get around a regulatory listing requirement of a three-year profit record.
Domestic brokerages are rushing to get into the stock market to tap funds from the world's best-performing stock market for opening branches and hiring brokers.
Northeast Securities has 581 million tradable shares with 4.9 billion yuan in total assets, based on its accounts as of Sept. 30, 2006. The brokerage hasn't provided the lasted financial figures.
Haitong Securities Co. became public through a similar maneuver in June, the first among the domestic brokerages to use the so-called backdoor listing for gaining access to the stock market.
Sponsor Results:
