PetroChina-world 1st TRILLION $ Firm

State-owned PetroChina Co., a unit of state-owned China National Petroleum Corp., (HK:386: news, chart, profile)is the country's biggest oil and gas producer. Its Shanghai initial public offering of 4 billion shares raised $8.94 billion -- a record for a mainland bourse.(Shanghai:601857.SS - News)

The offer drew $456 billion of subscriptions from retail and institutional investors, another Chinese record. Demand for that sum of money, greater than the gross domestic product of Belgium, caused the worst funding squeeze this decade in China's money market last month.

Adding the value of PetroChina shares traded in Shanghai, Hong Kong and New York (PTR.N: Quote, Profile, Research).-- and those still owned by the government -- the company's total market capitalization ballooned to just over $1 trillion, compared to Exxon Mobil Corp.'s $488 billion.

However, more than 85 percent the shares outstanding -- 157.9 billion shares -- are held by PetroChina's parent company CNPC and are unlikely to trade in the market any time soon.

PetroChina's new shares listed in Shanghai surged to 43.96 yuan ($5.90) Monday, nearly triple the IPO price of 16.70 yuan ($2.24).

Like other yuan-denominated "A shares" traded in China, the PetroChina shares issued in Shanghai are meant for domestic investors and are not generally available to foreign buyers. They account for 2.18 percent of the company's enlarged share capital of 183.02 billion shares.

In Shanghai, PetroChina's shares closed Monday at a much higher $5.90, lifting the value of company's remaining 162 billion shares -- mostly held by CNPC -- to $955 billion.

Adding the value of PetroChina's Hong Kong shares(HK:857: news, chart, profile), worth about $49 billion, the company's total market capitalization rose to more than $1 trillion.

Government-controlled PetroChina closed at 43.96 yuan in Shanghai, up 163 percent from its IPO price.($1=7.45 Yuan)

But Bear Stearns analyst Adam Clarke downgraded the company to "Underperform," or "Sell," from "Peer Perform," or "Hold," saying its shares are trading at a "hefty premium."

The market opens GAP-Down and managed to fill it by 10:15am.By 10:30am ,a double top was formed.This is the SELL signal.

Near the close,a technical rebound with a weak inverted hammer.The candlestick for the day is shape like an emperor's sword."inverted doji"

http://www.prosticks.com/education/candlestick_patterns/inverted_hammer.php?sid=355cd105f79507780fad8848469baca1

The Shanghai bund is able to withstand any tidal wave.Even if the bund got burst,you have the mighty dam across the Yangtse River (Ch'ang Jiang) that can neutralise it.

The chart pattern shows that the stream of army have been marching forward without much of strong resistance.It looks like the Great Wall of China formation has not ended yet at its tail end at Jiayiguan near Urumuqi.http://www.travelchinaguide.com/picture/china_great_wall/

China's Premier Wen Jiabao told Hong Kong journalists during a visit to Uzbekistan that the government needs to educate Chinese investors on risks, implement regulations to minimize shock brought to mainland and Hong Kong markets and hear opinions from financial regulators, including those in Hong Kong.There'll be new conditions to be in place for the "Hong-Kong stock direct train".Wen's comments will cool the desire to invest in the Hong Kong stock market.

So today's panic-selling across the board is a golden chance for new participants afterall he just commented but not say aborted the proposed launching.Anyway after a few days after the news have been digested,the bulls will start on their stampede again.The chart shows that the uptrend is still intact.