Chinalco

Mining hasn’t been the flavour of the month for investors, with big writedowns from Rio Tinto and Anglo American. But it’s still a shock to witness the poor stock market debut of Chinalco Mining Corporation International, the copper company spun out of state-run Chinalco, China’s biggest aluminium group.

The shares slumped by up to 11 per cent in Hong Kong on Thursday, even though the IPO was priced in the middle of the indicative range and cornerstone investors bought nearly half the $400m offer. The stock later recovered but still closed 6.3 per cent down. Clearly the recent equities rally has not restored investors’ appetites for IPOs.