Postal Savings Bank of China debuted on 10 Dec. in Shanghai. Investors have been expressing mixed reactions hours after its $4-billion initial public offering.
Elsewhere, analysts are concerned with many describing the stock's movement as "tepid" and "shy". However, PSBC stocks jumped 1.27% at 5.57 yuan within minutes of its public debut. The initial offering was 5.50 yuan. The stocks moved a few inches notches more at a 0.2% increase as of this writing.
The mixed reactions may be coming from the fact that PSBC holds the largest network of banks in China and that its initial stock offering was the largest share coming in the mainland in four years. It may also be coming from the fact that China-based bank's IPOs in the past saw stocks roaring multiple times in the after-hours of the debut.
Amid some worries on PSBC stocks, its "tepid" movement was not isolated. China stocks were relatively flat on Tuesday. Observers said the lukewarm sentiment is coming from fears over looming U.S. tariffs set to take place on 15 Dec.
Other analysts were quick to point out that investors were doubtful after the fall of China's producer prices, sinking for the fifth consecutive month in November. At the same time, consumer prices skyrocketed in the same period.
A look at markets worldwide indicates that the majority of stocks fell sharply as well on Tuesday. Unlike with PSBC stock with a tepid increase, stock markets around the world declined as the 15 Dec. deadline looms.
And while new tariffs on $160 billion of Chinese goods looming over markets worldwide, there are other stimuli everywhere. Participants are awaiting decisions about interest rates on U.S. and European markets. The market is also restless on the result of Britain's general election on Thursday, not to mention the repercussion if ever Berit happens at the end of 2019.
For one both benchmarks in London and Frankfurt were down Tuesday. The same can be said for benchmarks in Tokyo and Hong Kong, including Wall Street.
For example, a benchmark for U.S. crude lost 31 cents per barrel on the New York Mercantile Exchange. Even USD was flat while both the yen and euro were slightly on the upwards.
Ahead of PSBC IPO, the bank said investors were keen on paying 3% of shares for its public debut in Shanghai. The bank raised about $4 billion from its initial sales and it only aimed for $4.7 billion shares sale for a duration of a month after initial trading.
