The number of listed companies in southwest China's Tibet autonomous region hasrisen to 13 after Tibet Huayu Mining Co Ltd joined their ranks.
With the government encouraging Tibetan IPOs to boost the region's economy, Huayu'sshares on the Shanghai stock exchange jumped by the maximum allowance of 44 percent onWednesday's first day of trading and by the daily limit of 10 percent to 11.37 yuan ($1.75) pershare on Thursday.
Established in 2002 in Lhasa with a registered capital of 468 million yuan, the company isengaged in exploitation, processing, sales and prospecting of non-ferrous metal. It has twomining projects for production and four for prospecting, with total assets exceeding 1 billionyuan.
The China Securities Regulatory Commission (CSRC) approved Huayu's IPO application inNovember.
Chen Manjiang, deputy director of the regional government's finance office, said the listingindicates the capital market is becoming an increasingly important part of the regionaleconomy.
In March last year, the CSRC vowed to prioritize IPOs by Tibetan companies zand create a"multi-layer equity market" in the region.
It said it would help Tibet's businesses to issue corporate bonds on the Shanghai andShenzhen stock exchanges as well as through the new national stock transfer system forsmaller firms.
Tibet's 12 listed companies reported a total market value of 140.76 billion yuan at the end of2015, about 1.37 times as much as the region's GDP for that year, according to the regionalsecurities regulator.
Another 33 Tibetan businesses are planning to go public.