Chinese mining giant plunges following Hong Kong IPO
Chinalco Mining Corporation (HKSX:3688) plunged over 11% following it's debut on the Hong Kong Stock Exchange on Thursday.
The first major IPO in Hong Kong for 2013 managed to raise a total of $397mn, opening at HKD$1.55 (USD$0.20) and gaining slightly before diving below its listing price.
The company is a subsidiary of state-backed Chinese giant Aluminum Corporation of China (NYSE:ACH), China's sole alumina producer and its largest aluminum producer, and counts diversified mining giant Rio Tinto (NYSE:RIO) amongst its cornerstone investors.
Chinalco's current focus is on overseas copper mining.
According to analysts the company's stock price took a hit from release of figures on Wednesday in Washington indicating that the US economy shrank in the final quarter of 2012.
Copper prices pared back recent gains as a result, due to increased concern that the recovery of the global economy remains an uncertain prospect.
Chinalco Mining controls the Toromocho Project in central Peru, which is one of the world's biggest pre-production copper projects.