UPDATE 2-Beijing Jingyuntong rises 11 pct after pricey IPO

* Shares close at 46.63 yuan vs IPO price 42 yuan

* IPO priced at over 50 times 2010 earnings

* Benefits from government support for solar power

* Analysts concerned over overcapacity down the road

* Jingyuntong counts Prax Capital, LDK Solar among investors (Updates with closing price)

By Soo Ai Peng

SHANGHAI, Sept 8 (Reuters) - Shares of Chinese photovoltaic equipment maker Beijing Jingyuntong Technology rose 11 percent on their Shanghai debut, defying a weak stock market and an IPO price at over 50 times the company's historic earnings.

China's stock markets have performed poorly this year, but companies from fast-growing sectors such as the renewable energy industry have been able to attract strong investor interest.

Jingyuntong and rivals such as Shenzhen-listed Zhejiang Jinggong Science and Technology and Jiangsu Huasheng Tianlong Photoelectric are beneficiaries of China's drive to develop the solar power sector.

While that helped Jingyuntong's fundraising, analysts have expressed concerns that overcapacity could hurt such firms down the road.

"The sector has seen massive capacity expansion since 2009 to meet strong orders from downstream users, while the concern is that strong growth in orders may not be sustainable after 2013," said Zhang Hao, an analyst with Haitong Securities in Shanghai.

"Unless we can see demand booming in the United States, China and Japan, which can replace the traditional big consumers such as Germany and Italy, I don't expect China's move to set unified grid feed-in tariffs for solar power generation will help improve the market significantly."

China has doubled its target for installed solar power capacity over the next five years to 10 gigawatt by 2015 and 50 GW by 2020, state media reported.

The country has also set unified grid feed-in tariff for solar power generation for the first time ever, giving clearer guidance for solar power project developers when making investment decisions.

HIGH VALUATIONS

Shares of Jingyuntong closed at 46.63 yuan, down from their opening price of 49.10 yuan, but above the IPO price of 42.00 yuan. The benchmark Shanghai Composite Index was down 0.7 percent.

The market has fallen 5 percent in August and more than 2 percent so far this month.

Beijing-based Jingyuntong sold 60 million shares in the IPO, which was priced at 53.5 times 2010 earnings and 26.8 times consensus estimates for 2011 earnings.

It raised 2.52 billion yuan ($394 million), nearly three times its initial target of about 900 million yuan.

Chinese companies have generally priced their IPOs more reasonably this year, compared with last year when the offerings, especially the smaller ones, were able to fetch excessive valuations of more than 100 times their earnings.

China's retail-investor-driven stock markets have a history of sharp first-day movements, where 40-50 percent gains and sharp falls have tended to be the norm for periods of time.

This year, stock debuts have been mostly lower.

Private equity firm Prax Capital and U.S.-listed Chinese solar wafer maker LDK Solar are among the shareholders of Jingyuntong, which makes monosilicon and polysilicon furnaces for the solar industry.

Prax Capital owned 6.96 percent of Jingyuntong and LDK Solar had a 1.08 percent stake, according to Jingyuntong's IPO prospectus.

The money raised will be used to finance the first phase development of a silicon industrial park in Beijing, Jingyuntong said in the prospectus.

Citic Securities was the underwriter of the IPO. ($1 = 6.391 yuan) (Additional reporting by Ruby Lian and Jason Subler; Editing by Kazunori Takada and Vinu Pilakkott)