China’s stocks fell the most in seven weeks after the securities regulator increased the pace of initial public offerings, spurring concern new equity sales will divert funds from existing shares.
Financial companies led declines, with Citic Securities Co. and Industrial & Commercial Bank of China Ltd. dropping more than three percent. The securities regulator said online rumors that the government was considering boosting a stamp duty on stocks were untrue. The ten companies which made their trading debuts on Friday all jumped by the daily limit of 44 percent. Phone company ZTE Corp. jumped 3 percent in Hong Kong after reporting a gain in first-quarter net income.
The Shanghai Composite Index slid 1.8 percent to 4,336.76 at the 11:30 a.m. break, the most since March 3. An increase in new shares may hurt liquidity and comes as the China Securities Regulatory Commission warned investors to be cautious about market risks after a world-beating rally in the past year.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015