China’s stock plummeted least 7 weeks
Shanghai Composite stock index fell 1.6% today – the most since the end of April. Officials Chinese IPO activity is recovering after 4 months suspended. This week, at least four companies will offer shares done.
“IPO will drain liquidity in the market and cause short-term volatility, as investors sell old stock (usually of small capitalization companies) to subscribe new shares,” Wu Kan – Director Dragon Life Insurance governor said.
China’s stock plummeted because of the gloomy economic outlook. Photo: Bloomberg
“The secondary market is bleeding, and the investors want to bet on the new shares”, Cai Feng – corporate strategist at Guoyuan Securities said. According to the Securities and Exchange Commission Chairman China – Xiao Gang, the end of the year, about 100 water company will carry out the IPO.
Technology stocks fell the most in 10 industries. Shares Yonyou two software vendors and Neusoft lost more than 7%. Leshi Internet Information & Technology, the biggest plunge in 2 months.
The index includes real estate stocks listed on the Shanghai Futures Exchange also fell for the third consecutive day. Since the beginning of the year, the index lost 7%. Shares largest real estate this country – China Vanke lost 1.4% today.
Yesterday, Prime Minister of China – Li Keqiang said the country will avoid a hard landing, despite downsizing stimulus. This comment came after figures showed new home prices in half of the cities in China fell for the first time in 2 years.
Tom Byrne – Senior Vice President at Moody’s today said hard times of the real estate market will drag China two times longer than before. If real estate sales fell by 10%, China’s economic growth will be only 5% -6%, he said.