By Laura He, MarketWatch
Reuters Enlarge Image
HONG KONG (MarketWatch) — Hong Kong and Shanghai stocks both pulled back on Tuesday, as investors worried that the Chinese securities regulator’s approvals of 24 initial public offerings might drain liquidity from mainland markets and dampen stocks.
The Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +0.61% fell 0.7%, while the Hang Seng China Enterprises /zigman2/quotes/210598031/delayed CN:160462 +1.12% , which tracks Hong Kong-listed mainland Chinese companies, declined 2.2%.
Over on the mainland, the Shanghai Composite Index /zigman2/quotes/210598127/delayed CN:SHCOMP +0.81% lost 2.2%.
The China Securities Regulatory Commission, the nation’s top securities regulator, announced late Monday that it had just approved the IPO plans of 24 companies. Of those, 12 would be listed on the Shanghai Stock Exchange, while the rest would go to Shenzhen markets.
Major mainland banks and property developers posted heavy losses in both Hong Kong and Shanghai.
Among top underperformers, Bank of China Ltd. /zigman2/quotes/204682472/delayed HK:3988 +0.65% /zigman2/quotes/209359942/delayed CN:601988 +0.61% lost 2.2% in Hong Kong, while tumbling 3.4% in Shanghai. Meanwhile, the H-shares of Industrial and Commercial Bank of China Ltd. /zigman2/quotes/201401473/delayed HK:1398 +0.37% /zigman2/quotes/202525815/delayed CN:601398 -0.37% declined 1.8%, as its Shanghai-listed shares, or A-shares, slid 3.7%. Leading Chinese developer Poly Property Group Co. Ltd. /zigman2/quotes/209766147/delayed HK:119 -0.44% skidded 4.8% in Hong Kong markets, and its Shanghai-traded Poly Real Estate Group Co., Ltd. /zigman2/quotes/201864015/delayed CN:600048 +1.12% sank 5.6%.
Other Asian markets were also mostly lower. Japan’s Nikkei Average /zigman2/quotes/210597971/delayed JP:NIK +0.14% dipped 0.1%, but the broader Topix /zigman2/quotes/210598092/delayed JP:180460 +0.09% inched up 0.1%. The yen /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0386% strengthened against the dollar to ¥119.76, from ¥119.96 at the previous stock close.
Sydney stocks also settled lower, with the S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.07% down 0.4%. However, Seoul shares bucked the weak regional trend, as the Kospi Composite Index /zigman2/quotes/210598069/delayed KR:180721 +0.13% edged up 0.2%.