China stocks fall for second day on liquidity woes

Mainland China share market declined for second day in row on Thursday, 17 July 2014, on the back of lingering concerns over the liquidity squeeze amid new share sales, with automakers leading retreat after China's order limiting government vehicles to senior officials. The benchmark Shanghai Composite declined 11.68 points, or 0.57%, to 2055.59. Trading turnover decreased to 79.10 billion yuan from yesterday's 102.03 billion yuan.

The China Securities Regulatory Commission (CSRC) has allowed 12 initial public offerings that may freeze subscription funds of as much as 766.5 billion yuan ($124 billion). CSRC has allowed six firms to get listed on the Shanghai Stock Exchange and the rest on the Shenzhen exchange. The companies range from machinery makers to pharmaceutical firms.

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