China and HK stocks fall on expectations of upcoming IPOs

viernes 6 de febrero de 2015 00:30 GYT
 

* CSI300 -0.9 pct; SSEC -1.1 pct; HSI -0.3 pct

* RRR cut fails to impact stocks

* Analysts expect further easing

By Sue-Lin Wong

SHANGHAI, Feb 6 (Reuters) - China and Hong Kong stocks fell on Friday morning as investors held back in preparation for a flurry of initial public offerings (IPOs).

The market has drawn limited support from the stimulus delivered to the Chinese economy by a reduction in banks reserve requirement ratios (RRR) earlier this week, though it has rasied expectations of more easing to come.

The CSI300 index fell 0.9 percent, to 3,338.36 points at the end of the morning session, while the Shanghai Composite Index lost 1.1 percent, to 3,100.88 points.

In Hong Kong, the Hang Seng index dropped 0.3 percent, to 24,696.53 points. The Hong Kong China Enterprises Index lost 0.7 percent, to 11,711.93.

"The market is down today not because of this week's RRR cut but rather because of the expectation of new IPOs. The impact of RRR cuts on the market will be felt over the long term, not the short term," said Tian Weidong, head of research at Kaiyuan Securities in Xi'an.   Continuación...