The fervour among mainland Chinese investors for new listings continued unabated on Tuesday as shares in Bank of Communications surged 71 per cent in its first day of trading in Shanghai, in spite of continued official warnings about the risk of a stock market bubble.

Analysts had expected a sharp rise in the company’s share price given the strong demand shown during the offering, but the actual jump exceeded expectations. BoCom shares shot up from an offering price of Rmb7.90 to Rmb14.99 in early trading, before falling back to close at Rmb13.54.