China stocks slump on IPO concern, Hong Kong holds steady

viernes 15 de mayo de 2015 00:51 GYT
 

* CSI300 -1.5 pct; SSEC -1.4 pct; HSI +0.5 pct

* Regulator says IPO increase won't have big market impact

* HSBC says Hong Kong stocks still interestingly valued

By Samuel Shen and Pete Sweeney

SHANGHAI, May 15 (Reuters) - China stocks slumped on Friday morning after the securities regulator said the market has ample liquidity to handle more initial public offerings, with some interpreting it as a signal that IPO activity could be stepped up further.

The market was also spooked by domestic media reports that state-owned Central Huijin Investment Ltd has been slashing holdings in exchange-traded funds tracking main indexes.

The CSI300 index fell 1.5 percent, to 4,630.94 points at the end of the morning session, on track to close the week up around 1.6 percent.

The Shanghai Composite Index lost 1.4 percent, to 4,315.22 points, bringing this week's gain so far to 2.6 percent.

Xiao Gang, chairman of the China Securities Regulatory Commission (CSRC) told a conference on Friday that the watchdog's recent move to accelerate IPO approvals won't have a big impact on the market, because "there are relatively big inflows of cash" into equities.   Continuación...