SHARES of Shanghai Pudong Development gained yesterday, the first day when the lockup period of its 412.5 million non-tradable shares expired.
The bank ended at 29.28 yuan (US$4.18) yesterday in Shanghai, a rise of 4.27 percent. The benchmark Shanghai Composite Index inched up 0.37 percent to 3,626.98.
The bank, in which Citigroup holds 3.78 percent, has 412.5 million freed shares which started trading yesterday with a market value of about 11.6 billion yuan. The shares, held by the bank's two biggest shareholders, accounted for 7.29 percent of its total shares, or 8.97 percent of the whole tradable shares.
Analysts said the expiration of the lockup period will not impact the shares of the bank greatly as the two shareholders, the Shanghai International Group, the investment arm of the Shanghai government, and its subsidiary Shanghai International Trust Co, are unlikely to sell their holdings.
SYWG Research & Consulting in a report yesterday maintains its add rating on the bank which it described as ''a stable middle range bank." It expects the bank's profits to grow 95 percent this year and to rise 30 percent next year.
Bank of Communications also has 13.24 billion non-tradable shares which are set to expire on Thursday with a market value of about 124.7 billion yuan.