China shares slide on move to restart IPOs
Updated: 2013-12-02 16:02
HONG KONG - China shares ended a choppy Monday on a weaker note, as investors took profit on outperformers this year in anticipation that initial public offering reforms will divert funds to new listings.
Brokerages jumped after the China Securities Regulatory Commission announced long-awaited measures intended to streamline the initial public listing process in the mainland, which has not seen a new listing approved since October 2012.
The move on Saturday was seen as a signal the process could resume by end-January. The regulator said it expects a first batch of up to 50 companies to complete preparation by then.
The CSI300 of the biggest Shanghai and Shenzhen A-share listings ended down 0.8 percent at 2,418.8 points. During the morning, it rose 1.1 percent at one point and later was down 1.7 percent.
The Shanghai Composite Index shed 0.6 percent in the strongest volumes since Sept 12.
The ChiNext Composite Index of mostly technology start-ups listed in Shenzhen, which was up more than 80 percent in 2013 before Monday, plunged 8.4 percent in a record loss since it launched in 2010.
Laggard large caps, particularly banks, were buoyed by new rules mandating cash dividends and another announcement from the State Council, China's cabinet, on the start of a preferred share pilot.
Both moves came about two weeks after Beijing unveiled details of an ambitious reform agenda and as two surveys pointed to stabilising factory growth in the mainland in November.