Shanghai, Nov 5 (DPA) State-run oil and gas giant PetroChina Monday became the world’s largest listed company at about $1 trillion market value.
Shares of the company shot up by 163 percent on the Shanghai bourse – China’s largest stock market – giving the firm the world’s highest market capitalisation.
PetroChina shares opened at 48.6 yuan ($6.5), up 191 percent from their initial public offering price of 16.7 yuan ($2.2), before slipping back to 43.96 yuan ($5.9) at the close.
The rise of 27.26 yuan ($3.6), or 163.23 percent, put PetroChina’s market capitalisation at about $1 trillion, well ahead of the previous highest, Exxon Mobil, which was valued at $488 billion Friday.
Despite PetroChina’s success, the key Shanghai Composite Index, which measures both yuan-dominated A shares and foreign currency-traded B shares, lost 2.48 per cent Monday.
Amid continuing volatility in China’s rapidly expanding stock markets, the smaller Shenzhen Composite index also fell by about 0.7 percent Monday.
The Shanghai index lost 143.36 points to end the day at 5,634.45, falling for the third consecutive trading day.
Banks and property firms were among the big losers in Shanghai, the official Shanghai Daily said.
Shares in the Industrial and Commercial Bank of China dropped by 4.16 percent while those in the Bank of China lost 3.88 percent, the newspaper said.
PetroChina last week announced the world’s largest IPO this year, raising 66.8 billion yuan ($8.9 billion) for four billion A shares, or 2.18 percent of its expanded share capital, to be traded in Shanghai.
The company is also listed on the Hong Kong and the US stock markets, but the Shanghai IPO issue gave Chinese investors their first chance to buy shares.