KERRY Stokes's Seven Group Holdings will struggle to make a quick paper profit on its stake in Agricultural Bank of China following the muted debut of the bank's shares on the Shanghai stock exchange yesterday.
Seven spent $US250 million ($283 million) to become one of 11 cornerstone investors that committed $US5.45 billion to the Hong Kong part of the float, The Australian Financial Review reports.
Agricultural Bank of China's Shanghai shares ended their first day of trading at 2.70 yuan (45.2¢), which was just 0.75 per cent above the 2.68 yuan issue price. Its Hong Kong shares were issued at $HK3.20 (46.7¢) and start trading today.
Some analysts say the first-day performance of the Shanghai shares was a respectable result, given the volatile nature of the Chinese market and concerns over AgBank's growth prospects. The Shanghai Composite Index fell 1.9 per cent yesterday.
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