00:00Yes, the company, one of China's biggest renewable energy providers,
00:04saw its share price more than double on its Shenzhen debut. The IPO price was $1.49
00:11and it closed at $3.64. That's an increase of 144%. At one point, it surged by 198%,
00:21triggering a brief trading halt as volatility control roofs kicked in.
00:28It raised $3.6 billion in Asia's biggest listing so far this year. There was heavy demand from
00:37retail investors, with this portion more than 680 times oversubscribed.
00:43And the IPO comes amid a boom in Chinese mainland listings. A-share IPOs in the Shanghai,
00:50Shenzhen and Beijing exchanges have raised more than $7 billion in the first half of 2026.
00:57That's up nearly two-thirds from the same period a year earlier.
01:02Zheng Zhiyue is president and chief economist at Pinpoint Asset Management.
01:07I think it's well recognized in the market by investors that it is in the right sector.
01:14It has an interesting narrative. This alternative energy story is very topical among investors.
01:23And also, it is, you know, a rare case that has been approved to be listed in Shenzhen Stock Exchange.
01:33And originally, this stock was listed in Hong Kong. So, you know, it shows the government policy support.
01:40I think that's also a reason why it performs so well today.
01:43Why do you think this listing proved so popular, particularly among retail investors?
01:50Yeah, I think that the retail investors probably look at a few things.
01:54Number one, this alternative energy story, scanning momentum, particularly after, you know,
02:00what happened in the Middle East, that these are this sustainability of alternative energy.
02:07And also from a national security perspective, now it's gaining more momentum.
02:13And secondly, I think the government support to approve this listing in Shenzhen Exchange shows that
02:19this particular company is well in line with the government policy agenda.
02:26So, in coming years, it's likely to perform well.
02:30Why is it so significant that the listing was in Shenzhen?
02:35Yeah, Shenzhen, you know, compared to Shanghai, Shanghai is more of a conventional stock exchange
02:41that has a, you know, broad range of stocks get listed, whereas in Shenzhen,
02:47some of the, you know, more tech-oriented or more sort of new economy-oriented stocks
02:53quite often get listed, so there's a big difference.
02:58But I think it's more about, you know, this particular company itself that
03:04originally, again, listed in Hong Kong and now approved to be listed in mainland China,
03:09and that, you know, is a very rare case.
03:11I think it hasn't happened in recent years.
03:14So, it's the first case recently, so that shows, you know,
03:18probably some policy support for this company.
03:23A share IPO activity has been picking up this year.
03:27Do you expect that to translate into larger and more frequent listings?
03:32I think so, but, you know, it's also a structural story, right?
03:37So, if you look at all these IPOs, not all of them performed as well as this particular stock.
03:43So, investors are interested, you know, they are, you know, ready to allocate capital
03:49into the capital market, but they're also picky.
03:52I think the, you need to find, you know, particular stories and, you know,
03:59tech or alternative energy or some other sectors that perform well,
04:05and then they get, you know, overwhelmingly support from investors.
04:11So, if there's, I would say there's a divergence across different sectors,
04:16but overall, I think if it's a good story, it's a good sector,
04:20then you don't need to worry about the inflow from investors to allocate capital into those sectors.
Comments