Investment bank China International Capital Corp rose as much as 7.39 percent in its Hong Kong debut as China's decision to allow a resumption of initial public offerings boosted the outlook for its business.

The stock was up 7.39 percent at HK$11.04 ($1.47) at the close on Monday, heading for the best performance of a major Hong Kong IPO since April. The Hang Seng Index dropped 0.61 percent.

"Investors are turning positive toward Chinese brokerages," Zheng Chunming, a Shanghai-based brokerage analyst at Capital Securities Corp, said by phone. "They are happy that one of the major income sources is back."

The investment bank, which raised $811 million, pushed on with its plans for the share sale even as mainland's stock market was collapsing over the summer. Now, its listing has coincided with a revival in Chinese equities, which rallied into a bull market last week, and authorities' decision to lift a five-month freeze on IPOs on the mainland. CICC plans to use the money to expand its equity sales and trading, wealth management and international businesses, according to its prospectus.

The investment bank is on track for the best debut of any Hong Kong first-time share sale of at least $500 million since GF Securities Co, which rose 35 percent in April after a $4.1 billion IPO.

Ten cornerstone investors bought $465 million of stock, according to the prospectus. Cornerstone investors typically agree to hold on to their shares for six months in return for an early, guaranteed allocation.

China's Silk Road Fund Co invested $100 million, while Hong Kong-based fund manager Value Partners Group Ltd bought $50 million of shares. US-based Prudential Financial Inc purchased $25 million of stock, while an arm of the State-run Xinhua News Agency committed $30 million.