Zijin Gold, a subsidiary of China's largest mining company Zijin Mining, surged sharply in trading on Tuesday (September 30), with a peak of 67% to HKD 119.9 (SGD 19.89) per share during trading.
Zijin Gold International raised $3.2 billion (SGD 4.132 billion) through its initial public offering (IPO), making it the largest IPO in Hong Kong in nearly four years.
Bloomberg pointed out that the listing of Zijin Gold coincides with the market's optimistic sentiment towards gold prices reaching new highs for three consecutive years, boosting the valuation of gold mining stocks and facilitating financing. This is also good news for the Hong Kong stock market, which means that the Hong Kong Stock Exchange has become the location of the world's two largest IPOs this year, driving the IPO financing amount in the Hong Kong stock market to a four-year high.
Spot gold prices hit a new high of $3842.76 per ounce on Tuesday. Since September, the gold price has risen by 11.4%, expected to record the strongest monthly increase since August 2011, with a cumulative increase of about 42% so far this year. The reasons behind this include global political uncertainty and declining interest rates in various countries.
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