China stocks close flat, claw back losses from IPO worries
Jan 6 (Reuters) - China stocks clawed back losses on Tuesday to close flat, recovering from concerns that upcoming initial public offerings will drain money from existing shares.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen ended flat at 3,641.06, while the Shanghai Composite Index finished at 3,351.45 points.
The securities regulator approved 20 IPOs late on Monday , which has led some investors to worry new issues will draw money away from existing shares, said Cao Xuefeng, head of research at Huaxi Securities.
Those fears had contributed to the declines in the morning, when both indexes were down around 1 percent.
Financial shares were the largest drag on the market, with the CSI300 financial sub-index declining 1.83 percent at the close.
Financials have led the recent stock rally as hopes remain high for further monetary easing, and the sub-index is up more than 65 percent since the rally began in late November.
Both the CSI300 and Shanghai Composite had hit more than five-year highs on Monday.
Among the most active stocks in Shanghai were Bank Of China , up 3.4 percent to 4.57 yuan; Agricultural Bank of China, up 1.8 percent to 3.96 yuan and Industrial and Commercial Bank of China, up 0.8 percent to 5.10 yuan.
In Shenzhen, TCL Corp, up 3.0 percent to 4.15 yuan; BOE Technology Group, up 0.9 percent to 3.49 yuan and China Vanke, down 3.7 percent to 14.36 yuan were among the most actively traded.
Foreign investment flowing into Shanghai from Hong Kong through the mutual market access pilot programme took up 2.09 billion yuan of the 13 billion yuan daily quota.
Total volume of A shares traded in Shanghai was 50.1 billion shares, while Shenzhen volume was 21.1 billion shares. (Reporting by Jake Spring; Editing by Jacqueline Wong)
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