China brokerage Guotai Junan Securities soar after IPO

Shares in China brokerage Guotai Junan Securities have soared on their debut after the firm raised $4.8bn in China's biggest Initial Public Offering (IPO) since 2010.

Its shares rose by the maximum limit of 44% in Shanghai, despite the overall market falling by more than 6%.

The IPO, which accounted for 20% of the state-owned firm, raised 30.1bn yuan ($4.8bn; £3bn).

The Shanghai market has seen many new listings this year.

The Shanghai Composite index is up nearly 35% this year, despite increasingly volatile trading which has seen big swings in share prices. Last week, the index fell by more than 13%.

In an attempt to cool the market, Chinese regulators have tightened rules for margin financing, where investors borrow money from brokerages to buy shares.

Guotai Junan shares were up to 28.38 yuan from the IPO price of 19.71 yuan. Its listing attracted big demand, locking up 2.35tn yuan during the subscription period.

It was the biggest IPO since the Agricultural Bank of China raised $11bn in Shanghai and the same amount in Hong Kong in a dual listing five years ago.

The company said it planned to use the capital to expand its financial services and asset management business.