SHARES in Guotai Junan Securities Co., China’s third-biggest brokerage, jumped 44 percent in their Shanghai debut Friday after it raised 30.1 billion yuan (US$4.9 billion) in the country’s largest initial public offering (IPO) in five years.

    The feverish demand for the stock reflects a bull-run for the country’s share markets that has seen the CSI300 index of the largest listed companies in Shanghai and Shenzhen nearly double in value since November, when the central bank cut interest rates to support a slowing economy.

    The IPO, in which 20 percent of the brokerage’s stock come to market through the issue of new shares, attracted huge demand, freezing up 2.35 trillion yuan (US$380 billion) in capital during its subscription period. Chinese stock investors need to put up some money to join a lottery system to buy IPO shares, which locks up those funds.

    Shares in Guotai Junan soared to 28.38 yuan Friday, compared with their IPO price of 19.71 yuan — up by the maximum 44 percent that is allowed for stocks on their debut. (SD-Agencies)