Chinese securities trader launches largest domestic IPO

BEIJING -- Chinese securities trader Guotai Junan Securities Co Ltd became the largest domestic IPO in five years after launching on the Shanghai Stock Exchange on Thursday.

The company will sell up to 30.1 billion yuan ($4.92 billion) at 19.71 yuan per share, according to its IPO prospectus filed with the Shanghai Stock Exchange on Tuesday.

It will be the largest flotation in the domestic market since China Everbright Bank raised $3.2 billion in August 2010.

Chinese securities traders have been rushing to finance their business to support marginal trading as the domestic stock market experienced a stellar performance in the past eight months, with the benchmark Shanghai Composite Index growing by more than 100 percent.

Ten additional stocks launched their IPO on Thursday. Chinese stock markets have fluctuated since Monday, partly because the new listings drew money away from the market.