KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Strong Market Debut
Chinese automaker Chery Automobile surged 11.2% in its first day of trading on the Hong Kong Stock Exchange Thursday, after raising US$1.2 billion in the city’s second-largest IPO this year. The stock opened at HK$34.20, compared with the offer price of HK$30.75, while the Hang Seng Index gained 0.1%.
IPO Demand and Valuation
Chery sold 297.4 million shares at the top end of its HK$27.75–HK$30.75 range, giving the company a market value of nearly US$23 billion.
Institutional tranche oversubscribed 11.6 times
Retail tranche covered an exceptional 308 times
The strong demand underscores investor appetite for new energy and smart vehicle plays.
Cornerstone Support
Almost half of the offering was taken up by cornerstone investors, who subscribed for US$587 million worth of stock. Notable buyers included:
China’s Enterprise Mixed-Ownership Reform Fund – ~US$190 million
Hillhouse Capital – US$60 million
Use of Proceeds
Chery said:
35% of IPO funds will go to R&D for new passenger vehicles across multiple models.
25% will be invested in developing next-generation vehicles over the next three years.
Wider Market Context
The listing comes as Hong Kong gears up for another major deal: Zijin Gold International, which is raising US$3.2 billion in the city’s largest IPO in four years, with trading set to begin Tuesday.
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