Shares of China Construction Bank (CCB) began to trade in Shanghai today, open at RMB8.55, and closed up 32.56%.
Today, CCB’s market price was lower than our expectations. It was probably because of capital pressure on the A-share market produced by return of large caps. Also, it might be caused by disparate recognition of the counter because its H share experienced a rapid rise in the previous period. The price of RMB8.55, in relation to its H share on September 24, deserved a premium of 11.91%, below those of all its peers and other stocks in Shanghai and Shenzhen. We recommend buying into the stock should it be priced below RMB9.