Shanghai shares rise on Xiaomi's plan for IPO in Hong Kong
Shanghai stocks rose today after news that Xiaomi submitted an application for an initial public offering in Hong Kong while investors were also cheered by China’s central bank injecting funds into the financial system.
The Shanghai Composite Index edged up 0.64 percent to close at 3,100.86 points.
Technology shares rose as investor sentiment was boosted after Chinese smartphone maker Xiaomi submitted documents to the Hong Kong Exchanges and Clearing to pave the way for its IPO.
"The listing is expected to raise about US$10 billion via the public offering, giving Beijing-based Xiaomi a market value of between US$80 billion and US$100 billion," Reuters reported.
Data from Shanghai Securities News showed that shares related to Xiaomi jumped 2.23 percent today. Tongling Jingda Special Magnet Wire Co Ltd added 5.54 percent to 4.38 yuan (69 US cents) and Fujian Torch Electron Technology Co Ltd climbed 2.10 percent to 26.80 yuan.
Investor sentiment was boosted as the People’s Bank of China injected a net liquidity of 50 billion yuan into the financial market through reverse repos today, according to an announcement published on its official website.