China’s First IPOs Under New Relaxed Rules Surge on Debuts

The reform waives rules on valuation cap at 23 times earnings and first-day price limits. Photo: Bloomberg

(Bloomberg) — The first batch of debuts under China’s newest initial public offering reform surged on the Shanghai and Shenzhen main boards, an indication that the relaxed regulatory framework will bolster the country’s position as one of the busiest spots for share sales globally.

Electronics distributor Shenzhen CECport Technologies Co. Ltd. led gains among the 10 companies trading for the first time under the new IPO process, gaining as much as 239% Monday, while BOTH Engineering Technology Co. Ltd. rose as much as 133%. The other eight firms that listed also jumped in early trading, each triggering a 10-minute trading halt that takes place once a stock moves more than 30% in either direction.