Remember when private equity outfit Blackstone (NYSE:BX) went public in May? The China Investment Corporation (CIC) invested US$3 billion at the time. It was, if memory serves, the first investment by the CIC. How’s that working out now?
CIC invested HK$780 million in China Railway Group Limited (390.HK), the largest railway and tunnel contractor in Asia. Talk about a railroad boom! The company listed in Shanghai and went public this week, too. Its shares were up 69%…in one day. The Hong Kong market, ought to be renamed King Kong, in a respectful way, of course. It has clearly become an epi-bubble off the mainland, with Chinese companies listing and skyrocketing.
SHA:601857) —after making a stir and briefly becoming the world’s largest company by market cap, has fallen 37%. And two other IPOs, truck maker Sinotruk (HKG:3808) and dry bulk carrier Sinotrans (HKG:0598) both fell 13% after IPOing.
Markets and Money