China stocks fall on IPO, margin tightening worries; Hong Kong down

lunes 15 de junio de 2015 00:48 GYT
 

* CSI300 -1.7 pct; SSEC -1.5 pct; HSI -1.4 pct

* This week's IPOs expected to lock up 5.7 trln yuan of capital

* Market hit by fresh moves to tighten margin financing

By Samuel Shen and Pete Sweeney

SHANGHAI, June 15 (Reuters) - China stocks sank nearly 2 percent on Monday morning, saddled by a slew of bad news over the weekend, including fresh tightening of margin financing and signs of stepped up IPO issuance.

By midday, the CSI300 index fell 1.7 percent while the Shanghai Composite Index lost 1.5 percent, with banking, IT and energy stocks leading the decline. Hong Kong stocks tracked losses.

China's securities regulator published draft rules late on Friday that would for the first time limit the size of the country's rapidly-expanding margin trading and short selling by law, capping the businesses at four times a brokerage's net capital.

In addition, the China Securities Regulatory Commission (CSRC) demanded that brokerages conduct self-inspection to make sure they do not facilitate lending to clients through illicit channels.

Elsewhere, the risk of highly-leveraged stock purchases was highlighted by reports in local media of a 32-old investor who ended his life last week by jumping off a building after losing 1.7 million yuan betting on a single stock with borrowed money.   Continuación...