China rail firm hit the stock

The Chinese rail firm, China CNR, has made a muted start to stock market trading, rising just 4 % on its first day of trade. That is the smallest first-day gain for a stock debut in China this year. CNR has raised $2 bn (£1.2 bn) to upgrade its technology from the share market listing. It is the fourth-biggest Chinese listing this year. A flood of firms have listed on the stock market in Shanghai this year since a ban was lifted in June. Local media reported that in December alone, 35 new share sales were expected. "The weak debut is actually good for the market as it sends a warning for future initial public offerings, forcing companies to think twice before they set sky-high prices," said Chen Huiqin, senior stock analyst at Huatai Securities in Nanjing. China has the world's fastest-growing railway market. CNR is one of the country's two biggest rail firms, competing with China South Locomotive to supply trains. Beijing has pledged to increase spending fourfold over the next five years to improve infrastructure.