Huayi Brothers Media became one of the hottest stocks on its first day of trading last Friday on China’s ChiNext stock market. Its opening-day price reached $10.37 (RMB70.81), more than double its launch price.

The media group, known for producing Feng Xiaogang’s local blockbusters such as The Assembly and If You Are The One, passed the review of the China Securities Regulatory Commission in September and became the first film production company to go public in China. The price was then set at $4.18 (RMB28.58).

Local securities journals described the hike of Huayi’s share price as “crazy” on Friday, Oct 30. Opening at $9.32 (RMB63.66), which was already 123% up from the launch price of $4.18 (RMB28.28), the shares went up to $11.18 (RMB76.40) by 11am. After suspension they fell to $10.37 (70.81), 148% up from the launch price.

So far the company has a market capitalisation of $1.57bn (RMB10.7bn). In its prospectus to go public, Huayi said it planned to raise $91m (RMB620m).

Securities journal Investor China says the price rose too fast and pointed out that the company’s rather low annual film production volume, and that its profitability largely relies on the works of Feng Xiaogang, are two major risks in investing in the company.

The journal says a reasonable price of Huayi Brothers shares should be set at between $3.51 (RMB24) and $4.98 (RMB34).