China stock market continues to perform well with latest hot IPO :

China Construction Bank Corp became the world's third-largest bank by market value upon listing in Shanghai. It overtook Bank of America Corp. after the share price surged 40% on the first day of trading in Shanghai, giving the Beijing- based bank a value of $226.9 billion.

Construction Bank, which has traded in Hong Kong since October 2005, raised 58 billion yuan ($7.7 billion) selling shares at 6.45 yuan apiece this month in the world's second-largest IPO for the year.

Now it would appear that China has two of the world's three largest banks by market value, less than four years after the government spent $150 billion restructuring the industry. Since then, banking profits continued to rise and the China's stock index quadrupled in the past year to be the world's most expensive relative to earnings.

``Investors know this is irrational and can't last forever, but as long as China's growth engine keeps roaring, banks will churn out great results and everything seems justified,'' said Wang Xu, a bank analyst at China Universal Asset Management Co. in Shanghai, which owns 6.5 billion Construction Bank shares.