11 de diciembre de 2014 / 4:53 / hace 3 años

China stocks fall after flood of IPO approvals, Hong Kong weak

* CSI300 -0.8 pct, SSEC -0.6 pct, HSI -1.2 pct, HSCE -1.5 pct

* New 12 IPOs raise concerns over market liquidity

* But indexes may reverse after PBOC eases lending restrictions

* Trading volumes have slid sharply since record high this week

By Chen Yixin and Pete Sweeney

SHANGHAI, Dec 11 (Reuters) - China stocks fell on Thursday on concerns over market liquidity after a slew of new listings were approved, and trading volumes continued to plummet from an all-time high on Dec 9.

China’s securities regulator approved ahead of schedule 12 IPOs late on Wednesday, a move which could cool a blistering rally in the country’s stock markets which has seen the benchmark CSI index surge over 30 percent in two weeks.

The CSI300 index fell 0.8 percent to 3,195.24 points at the end of the morning session, while the Shanghai Composite Index lost 0.6 percent, to 2,921.70 points.

China’s CSI300 stock index futures for December fell 2.1 percent, to 3,204.6, a spread of 9.4 points versus the current value of the underlying index.

“After hitting such a high level, the index does need a correction,” said Liu Jingde, analyst at Cinda Securities in Beijing.

Reuters reported on Thursday that the People’s Bank of China (PBOC) had begun easing the enforcement of quotas and loan-to-deposit ratios to encourage banks to quicken lending in October.

Analysts said that was mixed news for markets, as it appears regulators are concerned that too much new credit was used for stock speculation in November.


Hong Kong stocks eased in the morning session, discouraged by price consolidation on the mainland and weakness in U.S. and other emerging markets, analysts said.

The Hang Seng Index dropped 1.2 percent to 23,239.84 points, while the Hong Kong China Enterprises Index lost 1.5 percent to 11,208.1 points.

“A-shares have climbed too much and may have already reached a short-term peak,” said Linus Yip, strategist at First Shanghai Securities Ltd in Hong Kong. “(The mainland markets) may have some technical rebound but it doesn’t have much impact on Hong Kong.”

Yip added that sentiment was also beaten down by overseas markets, given the MSCI emerging market index, which is benchmarked to more than $1.3 trillion in global assets under management, had dropped to its lowest point since March 2014.

By midday, the biggest losers were Hong Kong-listed Chinese oil firms as global oil prices hammered energy shares.

The index measuring price differences between dual-listed companies in Shanghai and Hong Kong stood at 115.02.

A value above 100 indicates Shanghai shares are pricing at a premium to shares in the same company trading in Hong Kong, and vice versa.

Total volume of A shares traded in Shanghai was 29.21 billion shares, while Shenzhen volume was 13.73 billion shares.

Total trading volume of companies included in the HSI index was 1.1 billion shares.

Additional reporting by the Shanghai Newsroom

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