January 11, 2017 / 7:14 AM / 2 years ago

China stocks fall for second day as more IPOs approved

SHANGHAI, Jan 11 (Reuters) - China stocks fell for the second day on Wednesday, pressured by an increase in equity supply and as investors took profits on state-owned stocks which had soared on reform hopes.

The blue-chip CSI300 index fell 0.7 percent to 3,334.50 points, while the Shanghai Composite Index lost 0.8 percent to 3,136.75.

Analysts said faster approvals of initial public offerings (IPO) and increasing issuance of additional shares by listed companies have added to supply in the market.

China’s securities regulator approved 14 IPO applications on Friday, which were expected to raise up to 4.8 billion yuan ($693.3 million).

The ChiNext Price Index, the benchmark index tracking China’s start-up companies, fell 0.7 percent to plumb a 10-month low. The index slumped 28 percent last year.

Most sectors lost ground, led by consumer and transport shares.

China Southern Airlines fell 4.4 percent after adding 7.4 percent in the previous session on reform expectations, while another reform bellwether China United Network Communications dived 8.4 percent in its worst day in more than 10 months. (Reporting by Luoyan Liu and John Ruwitch; Editing by Kim Coghill)

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