Bank of Communications shares rise 80 percent in Shanghai debut

Share prices for China's Bank of Communications rose 80 percent on its first day of trading on the Shanghai Stock Exchange after raising 25.2 billion yuan (2.4 billion euros) in its initial public offering (IPO).

The shares traded well above their expected range of 12.76 to 13.26 yuan (1.22 to 1.28 euros), opening at 14.2 yuan (1.37 euros) and jumping to 14.65 yuan (1.41 euros) in early trade, dealers said. The IPO price was 7.9 yuan (76 euro cents).

Wu Yonggang, a banking analyst with Guotia Junan Securities, said that the valuation was too high. Wu attributed the price rise to investor enthusiasm, and said that the stock prices are expected to "fall back gradually to the level of its peers," AFP reports.

The Bank of Communications, China's fifth largest bank, sold 3.19 billion new A-shares for its IPO last month. The bank was first listed in Hong Kong in 2005.