Evergrande shares dazzle on HK debut

Evergrande Real Estate Group Ltd, the largest mainland developer by third-quarter sales, rose as much as 37 percent on its trading debut in Hong Kong.

Guangzhou-based Evergrande gained 34 percent from its initial public offering price of HK$3.50 to close at HK$4.70 yesterday. It rose as high as HK$4.80 earlier.

Home prices in the mainland rose at the fastest pace in a year in September on a $586-billion government stimulus plan, lower bank cash-reserve requirements and a one-year lending rate at a five-year low. Evergrande and existing stockholders raised HK$5.65 billion ($729 million) selling 1.61 billion shares last month after pricing the IPO shares in the middle of the offered range.