Container maker's shares surge on HK debut

China International Marine Containers (Group) Co, the world's largest producer of shipping containers, enjoyed a successful market debut in Hong Kong on Wednesday after moving its listing from the mainland's B-share market.

The company's share price closed at HK$11.22 ($1.45), up 15.67 percent from Nov 29, the last day it was traded on the Shenzhen Stock Exchange. B shares are denominated in foreign currency.

The total value of the stocks traded on Wednesday was 106 million yuan ($17 million), according to the information provider Wind Information Co Ltd.

No other companies are now proposing a similar transition.

After becoming listed again in Hong Kong, the containers group has 1.43 billion H shares outstanding and 1.23 billion A shares, which are traded on the mainland and denominated in renminbi.

Mai Boliang, director and president of the company, said the B-share market has become inactive, which has weakened its financing function. He said that is what ultimately pushed China International Marine Containers to move.

The company's overseas business is the source of about two-thirds of its income, and the listing in Hong Kong will prove a better way to attract high-quality investors, Mai said.

The relatively inactive trading in Shenzhen's B-share market in recent years has also pushed investors to look more toward A shares.

As China's capital market slowly becomes more open, foreign investors are finding they have more means of investing in the mainland, including the Qualified Foreign Institutional Investors system.

"The B-share market has already finished its historical mission in China," said Ted Tokuchi, managing director of Citic Securities Co Ltd and the chairman of Citic Securities International.

Various companies that are in a position to move from the B-share market to the A- or H-share market should be encouraged to do so, Tokuchi said.

"In the near future, it's expected that more companies will move out of the foreign-currency-denominated stock pool," he said.

China International Marine Containers first announced its stock transition plan on Aug 15.

In the first three quarters of the year, the company had 40.7 billion yuan in operating revenue.

chenjia1@chinadaily.com.cn