China Shanghai Composite Falls Below 2,000 Level on IPO ConcernWeiyi Lim
China’s stocks fell, with the benchmark index heading for a close of below 2,000 for the first time since July 31, on speculation new share sales will divert funds from existing equities.
The Shanghai Composite Index slipped 0.4 percent to 1,997.45 at 9:35 a.m. local time, extending a decline to 5.5 percent for this year.
The securities regulator approved about 52 companies to sell stock in Chinese markets following the lifting of a more than yearlong freeze at the end of December.
Neway Valve (Suzhou) Co. surged 43 percent in its Shanghai debut on Dec. 17. Eight more companies will start trading on the Shenzhen Stock Exchange tomorrow, with three companies on the Small and Medium Enterprise board and five on the ChiNext. The eight include Zhejiang Wolwo Bio-Pharmaceutical Co., Chengdu Tianbao Heavy Industry Co. and Shanghai Liangxin Electrical Co. Companies may raise 250 billion yuan ($41 billion) this year, PricewaterhouseCoopers LLP said this month.