China shares fall to one-month low on liquidity concerns, HK edges lower

jueves 23 de octubre de 2014 00:43 GYT

* HSI -0.4 pct, H-shares flat, CSI300 -0.7 pct

* Liquidity concerns weigh on China shares

* Hong Kong main index down on Wall St loss

By Kazunori Takada

SHANGHAI, Oct 23 (Reuters) - China shares fell to one-month lows by midday on Thursday, dampened by concerns over liquidity amid a rush of initial public offerings as well as profit-taking pressure.

The Shanghai Composite Index fell 0.9 percent to 2,305.6 points by the midday break, the lowest level since Sept. 24. The CSI300 of the leading Shanghai and Shenzhen A-share listings also declined 0.7 percent to a one-month low.

"Especially after gaining more than 10 percent since July, it is common for investors to take profits and the market to digest previous gains," said Zhang Qi, an analyst at Haitong Securities in Shanghai, adding that the current price correction would likely end soon.

Weighing on market sentiment are concerns over liquidity as a slew of companies conduct IPOs this week. Local media estimate that as much as 900 billion yuan ($147.1 billion) in funds would be locked up from the market.

In addition, the central bank declined to inject money into the interbank market for the second consecutive week via its open market operations.   Continuación...