Chinese Broker’s Shares Surge After $6.3 Billion Merger
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Shares of Shenwan Hongyuan Group Co. surged in their first day of trading in Shenzhen, making the firm China’s second-biggest brokerage by market value and close to becoming No. 1.
The stock rose as much as 42 percent from a “reference” price of 14.88 yuan cited by the firm, which resulted from unlisted Shenyin & Wanguo Securities Co. buying listed Hong Yuan Securities Co. for 39.6 billion yuan ($6.3 billion) in stock.