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China shares plunge to 3-week low
May 19, 2014, 5:46 pm

Chinese shares dropped more than 1 per cent on Monday to a three-week low as investors worried about a new wave of initial public offerings (IPOs) [Getty Images]

Chinese shares dropped more than 1 per cent on Monday to a three-week low as investors worried about a new wave of initial public offerings (IPOs) [Getty Images]

Chinese shares dropped more than 1 per cent on Monday to a three-week low as investors worried about a new wave of initial public offerings (IPOs).

The benchmark Shanghai Composite Index dropped 21.32 points, or 1.05 per cent, to finish at 2,005.18. The Shenzhen Component Index dropped 90.68 points, or 1.25 per cent, to close at 7,151.49.

Combined turnover shrank to 113.54 billion yuan ($18.42 billion) from 119.47 billion yuan on the previous trading day.

Late Friday, two new companies appeared on a list of new IPO applications submitted to the country’s securities regulator, the first new applications since December 2013.

This prompted investor concerns about a surge in new IPO cases that will lead to the expansion of the country’s stock market.

The financial, coal mining and oil sectors were among the weakest in Monday’s trade, with sub-indices for the sectors plunging 2 per cent, 1.34 per cent and 0.9 per cent, respectively.

The Industrial and Commercial Bank of China, the country’s largest commercial bank, dropped 0.57 per cent to 3.46 yuan.

China Shenhua, the largest coal miner, retreated 1.53 per cent to 14.18 yuan, while PetroChina, the largest oil and gas producer, dropped 0.52 per cent to 7.59 yuan.

 

Source: Agencies

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