China stocks retreat as new IPOs fan liquidity concerns; HK flat
* CSI300 -1.2 pct; SSEC -0.9 pct; HSI flat
* China approves 24 IPOs; renews concerns over liquidity
* Financial stocks lead the decline
By Samuel Shen and Kazunori Takada
SHANGHAI, March 3 (Reuters) - China stocks sagged on Tuesday as investor excitement over a weekend interest rate cut waned, with a flood of new initial public offerings (IPO) fanning concerns about tighter liquidity.
With no fresh stimulus expected during this week's National People's Congress (NPC), investors are shifting their eyes to economic fundamentals and near-term liquidity as 24 companies won regulatory approval late on Monday to launch IPOs.
"The rate cut was expected, and it shows that the economy is rather poor," said Hou Yinmin, strategist of AJ Securities.
"I don't see signs of fresh money flowing into the stock market so new IPOs would have some pressure on liquidity."
When the securities regulator approved the previous batch of IPOs in early February, it froze about 2 trillion yuan ($318.76 billion) worth of liquidity at one point, putting pressure on the stock market. Continuación...