China’s stock market has plunged by more than 40 percent since peaking in mid-June and analysts cited various reasons for the rebound on Thursday. (Photo : www.theepochtimes.com)
The merger of China's top two high-speed rail makers, China North Railway (CNR) and China South Railway (CSR), which resulted in the new conglomerate, has made a strong showing on its debut at the Chinese stock market on June 8, Monday, the Xinhua News Agency reported.
Named CRRC, the stocks of the post-merger company, priced at 32.4 yuan ($5.29) per share, rose by 10 percent at the start of trading and remained at that level until the end of the day's trading session.
CNR and CSR announced their merger on Oct. 30 last year, and before their trading suspension on May 7, the shares of the two companies have surged more than five times.
The incorporated company will focus on a major aim, based on the merger plan, which includes overseas industrial distribution and management to attain global presence.
A Reuters report on April 29 said that the two train makers have been negotiating with Bombardier on the possible acquisition of major stakes in the Canadian company's railway unit, but the talks did not prosper as CNR and CSR has not completed the merger that time.
Last month, there were reports that China was considering massive mergers and acquisitions (M&A) of its biggest state-owned enterprises (SOEs) to avoid fierce in-fighting and build industrial giants capable of competing in the global industry market. The planned merger and acquisition would likely reduce to 40 the centrally administered SOEs in the country that total 112.
The state-owned Assets Supervision and Administration Commission (SASAC) later denied the reports about the massive M&As, which it said were "unverified."
SASAC, however, announced on June 1 that the State Council had approved the merger of China Power Investment and State Nuclear Power Technology.
