China Stocks Fall Again Over IPO Concerns

Chinese stocks fell by the most in two weeks, led by small-company shares, amid concern new share sales may divert funds from existing equities.

Leshi Internet Information & Technology Co. and Huayi Brothers Media Corp., the biggest companies in the ChiNext index, slid at least 2.8 percent. China Eastern Airlines Corp. lost 4 percent after rallying by the daily limit yesterday. Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co. (600111), China’s biggest producer of the metal, retreated 1.9 percent after its first-half net income decreased 74 percent.

The Shanghai Composite Index fell 1 percent to 2,207.02 at 1:45 p.m., while the ChiNext slid 2.4 percent. The ten companies that will start to market initial public offering shares this week, including HMT Xiamen New Technical Materials Co. and Hubei Feilihua Quartz Glass Co., may freeze about 800 billion yuan ($130 billion), according to the Shanghai Securities News.

Bloomberg

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