CRRC loses $14bn in Market Value
Chinese rail giant CRRC loses $14bn in value a day after Hong Kong debutReuters

Shares in CRRC, the industrial giant Beijing created by combining two railroad equipment makers, tanked on its second day of trading in Hong Kong, falling below its listing price and wiping out some $14bn (£9.1bn, €12.4bn) in market value.

Shares in the Chinese behemoth finished 12.37% lower at HK$13.74 in Hong Kong trade and 9.41% lower at CN¥29.35 in Shanghai trade on 9 June. The scrip -- formed by the merger of China CNR Corp and CSR Corp – had, on 8 June, opened for trading in the two markets at HK$15 and CN¥29.45, respectively.

CRRC now has a market value of $116bn, after soaring as high as some $130bn on 8 June.

Last week, a Barclays report raised the price target for the firm to HK$17. Barclays said: "A world leader on the way. We expect CRRC to expand its dominance from China to the global market."

China merged the two state-owned rolling stock manufacturers to bag lucrative contracts overseas and win political influence in the process.

CRRC overshadows rivals like Germany's Siemens and France's Alstom as it targets emerging market economies in Africa, Latin America and South East Asia, aided by sales pitches from Premier Li Keqiang. Separately, CRRC is also bidding for notable contracts in the developed world.