The partial sell-off of shares in the subway firm started with long queues of would-be investors forming outside banks for the two million applications available. Police had to be called in to keep order as more than 100 people turned up outside HSBC bank in Mongkok district before the bank opened for business, witnesses said.

Similar long queues were also seen at other banks, they said. One billion shares, accounting for 20 per cent of MTRC's equity will go on sale at between 8.00 and 9.38 Hong Kong dollars (1.03 and 1.20 US), with the aim of raising eight billion to 9.38 billion dollars.

Martin Glass, deputy secretary for the treasury, was quoted by the Hong Kong iMail newspaper as saying the government was confident that privatisation would "go well", based on the response from institutional investors and market research on retail investors. Jack So, MTRC Chairman, however, said there was no guarantee on the return received. "There could be a difference on return. There must be some risk, like other businesses," he said.

MTRC expects profits in the year to December to jump 70 per cent to 3.6 billion dollars, from 2.11 billion dollars last year.