The Mainland China equity market edged lower in choppy trade on Wednesday, 10 July 2019, registering third day of consecutive losses, as investors continued withdrawing their money from the main board to flood of initial public offerings targeting new Nasdaq-like Science and Technology Innovation Board (STAR board) in Shanghai, where shares of some 25 technology companies are expected to begin trading on 22 July 2019. Market losses were, however, capped after official data released on Wednesday showed China's consumer price index rising 2.7% on year in June, in line with market expectations. At closing bell, the benchmark Shanghai Composite Index fell 0.44%, or 12.93 points, to 2,915.30. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 0.46%, or 7.24 points, to 1,550.87. The blue-chip CSI300 index shed 0.17%, or 6.39 points, to 3,786.74.
Investors continued withdrawing cash from blue chip A-shares to invest in the new tech board listings. Nine Chinese companies, among the first to float on China's red-hot Nasdaq-style tech board, are taking subscriptions from investors on Wednesday, diverting funds from the rest of the market.
The busy week of IPOs comes after an official announcement that the first batch of 25 companies will start trading on Shanghai's tech-heavy STAR Market on July 22. This week alone, 21 of them are taking subscriptions from investors.
The 25 tech-board applicants that have already unveiled offer prices plan to raise about combined 31.1 billion yuan (US$4.52 billion) from IPO sales, or an average 124.4 million yuan each.
ECONOMIC NEWS: China Consumer Prices Unchanged At 2.7% On Year In June -- China consumer prices added 2.7% on year in June, the National Bureau of Statistics said on Wednesday and unchanged from the May reading. On a monthly basis, consumer prices were down 0.1% following the flat reading a month earlier. The bureau also said that producer prices were flat on year in June and down from 0.6% in the previous month.
CURRENCY NEWS: China yuan was tad higher against greenback on Wednesday. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.8856 per dollar, nearly 3 bps firmer than the previous fix of 6.8856. Spot yuan was changing hands at 6.8863 at lateafternoon, 17 pips stronger than the previous late session close.
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