Chinese stocks fell, dragging the Shanghai Composite Index to a two-week low, on concerns that share sales will lure funds away from existing equities.
PetroChina Co, the world's most valuable company, slid 2.2 percent to 12.99 yuan and Shanghai Pudong Development Bank Co, the Chinese partner of Citigroup Inc, retreated 4 percent to 19.06 yuan.
Guoyuan Securities Co slumped 6.7 percent to 19.30 yuan after regulators approved its plan to sell additional equity. Tangshan Iron & Steel Co lost 7.5 percent to 6.9 yuan as it resumed trading after getting consent to combine with associate companies.
The benchmark index fell 69.46, or 2.3 percent, to 2,897.55 at close, the lowest since Sept 7. The gauge swung between gains and losses at least 10 times yesterday. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, declined 77.58, or 2.4 percent, to 3,131.03.
"When the market outlook isn't that clear, some investors withdraw funds from their portfolios to invest in IPOs, which guarantee returns on the first day of trading," said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co.
Chinese companies raised at least 96.1 billion yuan in local initial public offerings since a nine-month moratorium on sales ended in June.
Hang Seng up
Hong Kong stocks rose, snapping a two-day decline, after an index of US leading economic indicators climbed for a fifth month. The Hang Seng Index advanced 1.1 percent to 21,701.14 at close, snapping its 1.4-percent decline in the previous two days.
The Hang Seng China Enterprises Index, which tracks H shares of mainland companies, gained 0.8 percent to 12,511.55.
Source:China Daily
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