China stocks fall on earnings, new IPO

Mainland China share market closed weaker on Monday, 21 July 2014, on lingering concerns new share sales will divert funds from existing equities. Meanwhile fears of corporate earnings also weighed on local shares. The benchmark Shanghai Composite declined 4.59 points, or 0.22%, to 2054.48. Trading turnover declined to 75.70 billion yuan from yesterday's 82.51 billion yuan.

Concerns that new-share sales may divert funds from existing stocks also weighed on the market. Eleven companies will start to sell new shares this week after successful debut of Shanghai Beite Metal Works Co., an auto-parts maker, last week. New IPOs are expected to siphon off 766.5 billion yuan in funds, according to a Securities Daily report.

 

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