China stocks tumble as pending IPOs lock up cash

lunes 12 de enero de 2015 01:04 GYT

* CSI300 -1.7 pct, SSEC -2.1 pct

* HSI +0.1 pct, HSCE -1.4 pct

* Investors sell shares to escrow cash for upcoming IPOs-analysts

By Sue-Lin Wong

SHANGHAI, Jan 12 (Reuters) - China stocks tumbled in late morning trade on Monday as investors sold shares to raise funds for upcoming new listings this week, analysts said.

The official Xinhua news agency said 22 new share offerings were putting pressure on pricing, with Wednesday alone seeing 10 new offerings. It cited figures showing that the average IPO gained 43 percent on its first trading day in 2014, near the maximum allowable 44 percent.

"The impact of this week's expected IPO listings has cooled the market," said Xiao Shijun, an analyst at Guodu Securities.

The CSI300 index fell 1.7 percent, to 3,487.40 points at the end of the morning session, while the Shanghai Composite Index lost 2.1 percent, to 3,215.77 points.

The energy sub-index was down 2.56 percent at midday, the bank sub-index fell 2.2 percent and the financial sub-index lost 1.85 percent. China's NASDAQ-like ChiNext Index bucked the trend to end morning trade up 0.04 percent.   Continuación...