China Market’s 4th Straight Loss Dents Confidence
Confidence is weakening in the Chinese market after the fourth straight session of losses on Monday.
The Shanghai Composite Index dropped 1.63 percent to a five month low of 2224.11, energy and construction material stocks led decliners due to slowdown fears.
Citic Heavy Industries has priced its initial public offering at 4.67 yuan (74 U.S. cents) per share, which values the heavy machinery maker at 16.19 times earnings. The IPO, China's largest so far this year, will take subscriptions on Tuesday and Wednesday. China still has a chock-full IPO pipeline, with 703 companies waiting for regulatory approval, 119 firms that have been approved but are yet to list.
Stocks to Watch:
Property Stocks - Central China's Henan province has issued measures aimed at boosting demand for property. The highlights include a 30 percent discount on mortgage rates for first-time homebuyers and giving developers three more months to repay loans. The move seems slightly incongruous with central government’s repeated mantra that there will be no loosening of property curbs. Meanwhile, analysts expect more property curbs to be announced if housing prices rebound.
Shenzhen Zhongheng Huafua - The Shenzhen-based developer issued a statement explaining that it does not have any land in Qianhai, nor does it plan to invest there. The stock surged by its daily limit on Monday on hopes the firm will benefit from impending policies to develop the Qianhai zone. Qianhai is a 15-square kilometer (9.3-square mile) area designated the "Shenzhen-Hong Kong Economic Cooperation Zone" by the central government. State media has reported that Beijing will announce Qianhai policies as part of the 15th anniversary of Hong Kong's handover celebrations.
—By Cheng Lei, CNBC Asia Pacific