China, HK stocks fall on new IPOs, bank corruption allegation

lunes 2 de febrero de 2015 00:48 GYT
 

* Shanghai Comp -1.2 pct, CSI300 -0.9 pct

* Hang Seng Index -0.3 pct, HSCE -1.4 pct

* New listings, Arrest of China Minsheng president weigh

SHANGHAI, Feb 2 (Reuters) - Stocks in China and Hong Kong fell on Monday after regulators approved a flurry of IPOs and as official data showed China's factory activity unexpectedly shrank in January.

Shares of the country's biggest private lender, China Minsheng Banking Corp , also weighed on the market after media reported its president was being investigated by the anti-corruption watchdog.

The CSI300 index fell 0.9 percent to 3,404.77 points by the end of the morning session, while the Shanghai Composite Index lost 1.2 percent to 3,173.08 points.

In Hong Kong, the Hang Seng index dropped 0.3 percent to 24,438.50 points. The Hong Kong China Enterprises Index lost 1.4 percent to 11,556.19.

"The margin trading investigation, the new IPOs and the upcoming Chinese New Year holiday are all dampening the market," said Pan Shaochang, an analyst at Dongguan Securities.

The China Securities Regulatory Commission (CSRC) approved 24 new IPOs on Friday afternoon, a move that some investors perceived as an attempt to cool the red-hot stock market, which has soared around 40 percent since November, fueled in large part by borrowed money. Authorities have already launched probes into margin financing practices.   Continuación...