(Reuters) China Telecom Corp. began trading on the Shanghai exchange on a strong footing, with the shares up 34% on Friday, defying tough data protection laws by Beijing.
The listing by China’s Telecom saw it generate $7.3 billion, making it the world’s biggest stock market debut this year.
The surge happens even as China’s blue-chip index fell almost 2% on intensified Beijing crackdown.
The telecom giant also defied market fears, with its shares already blacklisted by Washington over links to the Chinese military.
Analysts say the surge in China’s Telecom was fueled by the so-called “green shoe” over-allotment mechanism and its inclusion of state shareholders.
The debut happens days after the telecom giant reported a 27.2% increase in the first-half earnings, which will see it improve its cash dividend ratio to 70%.
0728: HKG is down -4.78%
