China Shipping stock falls on first day of trading

China Shipping stock falls on first day of trading    China Shipping Container Lines had a poor start on the Hong Kong stock market today, with its stock falling 6 percent to HK$2.97 by midday, local time, from an initial public offering price of HK$3.175.
   Hong Kong equity analyst Citigroup Smith Barney has issued a “sell” advice to investors, saying China Shipping Container Lines' stock was sold at a price “higher than deserved,” with a premium of about 40 percent when compared to asset book value per share, and with the perception that the company benefits from the “China story.”
   Other investment firms have also reportedly issued “sell” recommendations to investors.
   Reuters reported Wednesday that equity analysts believe investors are “adopting a more selective approach towards China.”
   “CSCL is known in freight markets as among the lowest quality providers,” Citigroup Smith Barney said. The equity firm noted the company is young, and has only one year of profits behind it.
   Founded in 1997 through the merger of several regional Chinese shipping companies, China Shipping Container Lines has been one of the fastest-growing container carriers and now ranks as the world’s 10th-largest container shipping line. China Shipping Container Lines' IPO raised about $1 billion by selling a stake of about 40 percent in the formerly state-owned company.