Shares of China Resources (CR) New Energy, a wind and solar power company considered one of the biggest initial public offerings (IPO) in the Chinese stock market this year, surged nearly 200% during intraday trading on its debut.

According to reports from Reuters and other sources on July 2 (local time), shares of CR New Energy soared 198.3% from their offering price of 10.11 yuan in early trading on the Shenzhen Stock Exchange, triggering a temporary trading halt. The stock later pared some gains to close at 23.95 yuan, up 136.89%.

The company's market capitalization at the closing price stands at 311.5 billion yuan (approximately 71.1 trillion won).

CR New Energy is set to raise up to 24.5 billion yuan (approximately 5.6 trillion won) through this IPO, marking the largest offering in the Asian stock market so far this year.

However, this record may be broken, as ChangXin Memory Technologies (CXMT), China's largest DRAM manufacturer, is currently pursuing an IPO worth 29.5 billion yuan (approximately 6.7 trillion won).

This IPO is also the largest in the history of the Shenzhen Stock Exchange, surpassing the 13.9 billion yuan (approximately 3.1 trillion won) raised by Jinlongyu in 2020.

The IPO comes as the Chinese government has set a goal to significantly increase the share of non-fossil energy power generation capacity by 2030, and CR New Energy plans to use the funds raised for wind and solar power projects.

Meanwhile, according to data from market research firm LSEG, the total value of IPOs in the A-share market (common stocks issued by Chinese companies in mainland China in yuan) for the first half of this year reached 7.7 billion dollars (approximately 11.9 trillion won), a 64.4% increase compared to the same period last year.

(Photo: AP, Yonhap News)