China rail builder's Shanghai debut below forecast

SHANGHAI, March 10 (Reuters) - Domestic shares in China Railway Construction rose 21 percent in their Shanghai debut on Monday, below analysts' forecasts, after raising a combined $5.4 billion in Shanghai and Hong Kong in the world's largest IPO so far this year.

Local-currency A shares (601186.SS: Quote, Profile, Research, Stock Buzz) in the smaller of China's top two railway builders opened at 11.00 yuan, up from their initial public offer price of 9.08 yuan.

Five analysts polled by Reuters last week forecast China Railway Construction's A shares would move around 13 yuan on their first day of trading, up 43 percent from their IPO price but lagging a 69 percent jump on the first day of trading in the company's bigger rival, China Railway Group (601390.SS: Quote, Profile, Research, Stock Buzz), in early December.

They noted that market conditions were much worse than in December, while China Railway Construction had set a more expensive IPO price compared with China Railway Group.

China Railway Construction raised 22.246 yuan ($3.1 billion) in mainland China's 11th-biggest IPO ever, and added $2.3 billion from a Hong Kong offer that ranks as the most popular IPO in terms of demand from Hong Kong individuals.

Analysts had expected China Railway Construction to draw strength from its booming overseas business and its duopoly hold, together with China Railway Group, on the country's fast expanding railway construction sector. ($1=7.11 Yuan) (Reporting by Lu Jianxin; Editing by Edmund Klamann)