China Film shares surge on first trading day

China Film Co. Ltd., the country's leading film producer and distributor, went public in Shanghai on Tuesday, with shares surging by the maximum of 44 percent.

The company listed 467 million shares on the Shanghai Stock Exchange, raising 4.09 billion yuan (614 million U.S. dollars).

Its share price soared to 12.84 yuan from an initial offering price of 8.92 yuan on Tuesday morning before trading was halted.

The funds raised will be invested in movie production and digital cinemas, according to China Film.

A subsidiary of state-run China Film Group Corp., the company generates 17.6 percent of the nation's box office revenues and 58.3 percent of the film distribution market.

Its net profits jumped 54.8 percent year on year to 331 million yuan in the first quarter of 2016, helped by blockbusters including domestic sci-fi comedy "The Mermaid" and animation "Kung Fu Panda 3," which the company jointly produced with Hollywood.

The listing is expected to support the company's expansion in the world's second biggest film market, which has roared ahead with an annual growth of above 25 percent in box office income in the past decade.

Chinese cinemas pulled in 44.1 billion yuan in 2015, up 48.7 percent from 2014 and a whopping 235.9 percent from 2011. Endi