Shenzhen-traded GF Securities halted after hitting daily limit up amid Hong Kong flotation
Shares of Guangzhou broker rise sharply amid speculation over HK share offering
The Shenzhen-listed shares of GF Securities, one of the mainland's largest brokerage firms, were suspended from trading yesterday after they hit a daily ceiling of 10 per cent amid fresh speculation over the company's Hong Kong listing plans.
GF Securities shares rose 10 per cent to 14.82 yuan (HK$18.72) before trading was halted. The company was said to be attempting to raise US$1 billion through a Hong Kong listing.
Shares on the mainland's two bourses, in Shanghai and Shenzhen, are suspended from trading if the stock rises or falls up to the 10 per cent limit. The system, called an up-down stop mechanism, helps prevent investors from overreacting to any share price movement.
A Wall Street Journal report in August said GF Securities had shortlisted GF Capital Hong Kong and Goldman Sachs to handle the flotation.
Wendy Lam, the chief executive of GF Holdings (Hong Kong), the overseas unit of the mainland broker, yesterday declined to comment on the parent company's proposed share sale.
In an earlier statement to the Shenzhen stock exchange, the Guangzhou-based brokerage firm said the Hong Kong listing would represent about 20 per cent of its entire share capital, with the pricing and final size dependent on market conditions.