Shares of Chinese brokerage GF Securities Co. soared in Hong Kong for the best debut of a major listing in more than three years.
The stock rose 35 percent from its offer price to close at HK$25.40 on Friday. That compared with a 1.2 percent gain for the benchmark Hang Seng Index.
GF Securities’s $3.6 billion share sale added further fuel to surging Hong Kong and mainland Chinese stock markets, with the brokerage set to use some of the money to expand lending to equity investors. The firm’s first-day performance was the best for a Hong Kong share sale of at least $500 million since July 2011, when hypermarket operator Sun Art Retail Group Ltd. rose 41 percent.
The Shanghai Composite Index has jumped more than 60 percent since late November, when the central bank cut interest rates. In Hong Kong, stocks climbed to a fresh seven-year high on Friday.
GF Securities, based in Guangzhou, sold 1.48 billion shares to raise HK$27.9 billion, money that will also be used to support its investment banking, wealth management and international businesses, according to its prospectus.