China stocks fall, weighed down by IPOs, banks; Hong Kong mixed

miércoles 3 de junio de 2015 00:45 GYT
 

* CSI300 -1.2 pct; SSEC -1.0 pct; HSI +0.7 pct

* A dozen more IPOs launched on Wednesday

* Banks fall on signs of accelerated rate liberalisation

By Samuel Shen and Pete Sweeney

SHANGHAI, June 3 (Reuters) - China stocks fell on Wednesday morning as a dozen initial public offerings hit a market already pulled down by bank heavyweights on signs of accelerated interest rate liberalisation that threatens their margins.

The CSI300 index fell 1.2 percent, to 5,098.63 points, while the Shanghai Composite Index lost 1.0 percent, to 4,860.58 points. Hong Kong stocks were mixed.

Banking shares sagged, after China launched certificates of deposit (CDs), paving the way for full interest rate liberalisation.

"While this is clearly a good step, it is adding some short-term pressure on the share price of banks as they will have to compete to attract deposits," wrote Gerry Alfonso, director of Shenwan Hongyuan Securities.

The market already faces pressure from this week's big batch of IPOs, which some estimate could lock up more than 8 trillion yuan ($1.29 trillion) of cash.   Continuación...