April 30, 2007
Chalco.com Triples on Shanghai Debut
Chalco’s Shanghai Stock Gains Threefold on Its Debut, by Helen Yuan
Aluminum Corp. of China Ltd., China’s biggest aluminum maker, also known as Chalco, rose as high as 20.07 yuan from its issue price of 6.6 yuan.
Every day in every way things are getting crazier and crazier and crazier. ;-)
Cat: | Time: 6:17 pm (utc+8)
April 30th, 2007 at 6:55 pm
Have you written about the implications of this boom for global markets?
I remember you thought one particular market was insignificant on a world scale.
April 30th, 2007 at 8:21 pm
Andrew: The implication is a lot of manicurists are getting rich and I’m not making a dime.
The domestic Chinese stock market is more or less closed to foreigners, but the global knock-on effects when this thing reverses are probably pretty large.
April 30th, 2007 at 8:21 pm
It looks like the price premium of A-share over H-share is a classic supply and demand issue. A-share float is relatively small. The exception is China Merchants Bank, and its A-share trades with only a 2% premium over H-share.
April 30th, 2007 at 8:23 pm
brian: In the end it’s pretty hard to find anything that isn’t a “classic supply and demand issue.”
May 1st, 2007 at 7:40 am
Hi maoxian jia, thought that chalco is listed in HKSE too as H shares. it would be interesting to know how low the offer was priced at relative to the H shares. It is almost a carbon copy of the CITIC A+H IPO a few days ago…..
Isn’t there a ETF on the A Shares 2828,hk ? and something on the HKCEI based on H shares?
How practical is an arb here???
May 1st, 2007 at 8:15 am
sungster: Yeah, and Chalco is listed in the US too of course. There is an A share fund listed in HK (is the ticker 2828.HK?). I don’t know offhand how wildly out of line the valuations are, but the RMB isn’t easily convertible which makes any attempts at aribtrage troublesome.
May 1st, 2007 at 9:01 am
C. Maoxian: Good point, that’s also why I like the Economist. ;-)
2828 tracks the H-share index.
2823 tracks A-shares, but only the FTSE/Xinhua A50 and not the A-share index.
The big banks and insurers trades with a 20-40% premium in A-share over H-share.
I agree re currency controls and I also don’t see how any arbitrage is practical until the A-share market can be freely traded by foreign investors and the H-share market can be freely traded by Chinese investors.
May 2nd, 2007 at 8:18 am
Nice to see Bloomberg’s interface is still living in the early 80’s. Ahh, the halcyon days….
May 2nd, 2007 at 8:43 am
chud: If it ain’t broke don’t fix it, I guess. And who has trouble remembering a couple hundred three and four digit commands? ;-)
May 2nd, 2007 at 11:59 am
I’ve owned ACH for some time now…
May 3rd, 2007 at 12:09 am
CM:
Which software is that? Is that showing stocks in Shanghai/ShenZheng exchange or some ADR in US market?
Thanks.
May 3rd, 2007 at 7:54 am
JWang: It’s a screen showing the most active stocks by value … I think Bloomberg combines all the stocks on the Shanghai and Shenzhen exchanges and calls it “China Composite.”
May 9th, 2007 at 3:13 am
CM:
Have you ever tried any Chinese stock market tool?. They are free and very comprehensive(but do have bugs as any other software). E.g,
http://www.newone.com.cn/
http://www.soft8.net/s-dzh.htm
May 9th, 2007 at 6:15 pm
Jeff: Nope, never heard of them, but thanks for the links — I’ll check them out now.