SHANGHAI stocks snapped a four-day winning streak this morning amid fears of an oversupply of shares. The key Shanghai Composite Index lost 0.16 percent to 2,324.49 points. Turnover was 48.3 billion yuan (US$7.8 billion) by midday.
Non-tradable shares worth of 28.4 billion yuan will be allowed to circulate on the Shanghai and Shenzhen markets this week, a surge of 85.2 percent from last week's 15.3 billion yuan, The Securities Times reported today.
Investors are also worried that China's securities regulator may soon resume approval of initial public offerings after it suspended IPOs last December to launch a campaign against false disclosures and profit manipulations. The campaign is scheduled to finish before March 31 and there is speculation that the regulator will reboot the IPOs as early as next month.
As of March 15, 847 companies were waiting for regulatory approval to get listed on domestic exchanges, data from the China Securities Regulatory Commission showed.
Cement producers led the market down. Anhui Conch Cement Co, the country's biggest cement producer, lost 1 percent to 17.68 yuan. Gansu Qilianshan Cement Group Co shed 1.2 percent to 10.83 yuan. Shaanxi Qinling Cement (Group) Co slumped 2.4 percent to 6.08 yuan.
Most lenders declined. Industrial Bank lost 1.1 percent to 20.01 yuan. China Citic Bank Corp decreased 1.3 percent to 5.28 yuan.
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