SHARES of Postal Savings Bank of China (PSBC) marked a subdued Shanghai debut yesterday after a US$4 billion share sale, underlining worries about dwindling options for lenders in the country to replenish balance sheets in a slowing economy.

The shares of the bank, which has the largest network of branches in China, closed up 2 percent at 5.61 yuan versus the offering price of 5.50 yuan (US$0.8) in what was the largest mainland share sale in four years. PSBC shares had opened at 5.6 yuan.

It is not unusual for Chinese firms to post double-digit gains and in some cases even triple the price on their first day of trade. The PSBC debut adds to the recent downbeat investor reaction to share offerings by the local banks.

Zheshang Bank Co. rose less than 1 percent on its debut in Shanghai on Nov. 27 and dropped below its IPO price the following day.

PSBC said last week that investors had opted out of paying for 3 percent of shares on offer in the Shanghai listing in a rare development that underscored growing concerns over problems in China’s banking system.

Worries about China’s banking sector spiked this year after regulators in a rare move seized control of Inner Mongolia-based Baoshang Bank in May, citing serious credit risks.

PSBC, which first listed in Hong Kong in 2016, is conducting the Shanghai float as State-owned lenders are asked to be more responsive to the rigors of capital markets.

It raised at least 28.45 billion yuan from the first part of its share sale. Total funds raised could increase to US$4.7 billion if it chooses to exercise a greenshoe option of selling 15 percent more shares within 30 days of the start of trade.(SD-Agencies)