Chinese stocks close lower Thursday as ABC begins IPO roadshow

Chinese equities reversed early gains and closed lower Thursday as China's last state-owned commercial bank began roadshow for its dual listings in Shanghai and Hong Kong.

The Shanghai Composite Index rose 0.74 percent to open at 2,588.97 but gave up its gains and fell 9.7 points, or 0.38 percent, to close at 2,560.25.

The Shenzhen Component Index went up 0.6 percent to open at 10,300.5 but also dropped 76.97 points, or 0.75 percent to end at 10,162.37.

Total turnover weakened to 126.96 billion yuan (18.6 billion U.S. dollars) from last Friday's 152.66 billion yuan (22.35 billion U.S. dollars). Tradings at China's equity markets were suspended from Monday to Wednesday due to the traditional Dragon Boat Festival.

Losers outnumbered gainers by 554 to 278 in Shanghai and 676 to 252 in Shenzhen. A total 154 shares closed unchanged in the two markets.

The Agricultural Bank of China (ABC), began its roadshow for initial public offering and market expected a great amount of money will be locked during its subscription period till July 6.

According to the ABC prospectus, the rural lender plans to sell up to about 22.24 billion A-shares on the Shanghai Stock Exchange and up to 25.41 billion shares in Hong Kong, excluding an over-allotment option.

The bank would announce its IPO price range on June 29 and the final IPO price for its Shanghai listing on July 7.

Source: Xinhua