Chinese issue

A HONG KONG-based company has become the first Chinese government-owned corporation to issue shares on Wall Street.

Brilliance China Automotive Holdings successfully issued 5 million shares at dollars 16 each, at the top of a prospective dollars 14-dollars 16 price range, according to First Boston, the lead underwriter. That gave the company an dollars 80m capital injection, substantially more than the dollars 67.7m it was looking for.

Analysts said investors, tired of lacklustre opportunities elsewhere, were lured by the chance to get in on a strong economy without having to brave the Hong Kong or fledgeling Chinese stock markets.

The listing in New York will require that Brilliance conforms to American accounting standards and securities regulations.

Brilliance, which is registered in Bermuda, was set up earlier this year to hold a 51 per cent stake in the Chinese minibus-maker Shenyang JinBei Passenger Vehicle Manufacturing, which controls 40 per cent of the Chinese market for 11 to 15-seat vehicles.