Logistics firm's shares disappoint

HONG KONG: Shares in Sinotrans Shipping Ltd, China's third-largest bulk vessel owner, slumped during its Hong Kong trading debut, as investors cautiously reduced shares in the bulk-shipping sector because of concerns about falling iron ore and coal freight rates.

The stocks tumbled to HK$7.12, 13 percent lower than the HK$8.18 initial public offering (IPO) price, while its sister company, logistics firm Sinotrans Ltd, fell 7.3 percent to HK$3.7.

Analysts said investors were also worried about the health of the US economy, which shows signs of a worsening credit crisis. In addition, Sinotrans Shipping's IPO was priced at the high end when the market was still buoyant.