China stocks slump on tighter margin rules, IPOs; Hong Kong down

martes 5 de mayo de 2015 00:58 GYT

* CSI300 -2.2 pct; SSEC -1.8 pct; HSI -1 pct

* Some brokerages adopt tougher margin requirements

* Energy stocks up amid reform hopes

By Samuel Shen and Kazunori Takada

SHANGHAI, May 5 (Reuters) - China stocks slumped early on Tuesday, as media reports of tougher margin requirements by some brokerages added to concerns about market liquidity ahead of a new batch of share listings.

Several Chinese brokerages, including CITIC Securities Co Ltd, Haitong Securities Co Ltd and Huatai Securities Co Ltd have tightened requirements for margin financing this month in a bid to control risks, the Shanghai Securities News reported on Tuesday.

The move could curb money inflows in a highly-leveraged stock market rally. The outstanding value of margin financing - the amount of money investors have borrowed to buy stocks - has exceeded 1.8 trillion yuan ($290 billion) and repeatedly smashed records in recent sessions.

"I suspect the brokerages are doing so under the guidance of regulators, so this reflects regulators' intentions," said Zhang Chen, analyst at Shanghai-based hedge fund manager Hongyi Investment. "It gives an excuse for some investors to take profit."

The market is already grappling with short-term liquidity pressures as nine companies start taking subscriptions from investors on Tuesday for their initial public offerings (IPOs), with more scheduled to launch share sales later this week.   Continuación...