China stocks fall again on IPO concerns; Hong Kong rebounds

miércoles 17 de junio de 2015 00:54 GYT

* CSI300 -1.2 pct; SSEC -1.3 pct; HSI +0.3 pct

* Most sectors fall in China; banks rise on reform hopes

* Hong Kong lawmakers start debate on electoral reform plan

By Samuel Shen and Pete Sweeney

SHANGHAI, June 17 (Reuters) - Chinese investors sold shares across the board on Wednesday morning, as a fresh wave of initial public offerings hit the market at a time of doubts over how much higher it can go after an eight-month bull run.

By midday, the CSI300 index fell 1.2 percent and the Shanghai Composite Index lost 1.3 percent, bringing losses in both indexes this week to more than 6 percent.

Three companies will start taking investor subscriptions for IPOs on Wednesday, with another 22 firms following suit this week. This wave of IPOs is expected to freeze 7 trillion yuan ($1.13 trillion) of capital.

Among them, the IPO by Guotai Junan Securities is the biggest. China's third-largest brokerage by profit said it aims to raise 30.1 billion yuan in what could be the biggest listing since 2010.

The market's ability to absorb accelerated IPO issuance has been weakened by a fresh government crackdown on illegal margin financing. That has promoted some investors to take profit from a market that has surged 140 percent over the past 12 months.   Continuación...