Huge IPOs bite into key index
By Hu Xiaocen |
June 8, 2012, Friday
|
Print Edition
Print Edition
SHANGHAI stocks fell to a two-month low yesterday as investors were spooked that pending huge initial public offerings will drain capital.
The Shanghai Composite Index shed 0.71 percent to 2,293.13 points.
One of the possible huge IPOs is that of China National Nuclear Power Co, which has been approved by the environment ministry on Tuesday, to raise funds to finance a total of 173.5 billion yuan (US$27.5 billion) of projects. It's the first IPO by a developer of atomic energy in China.
"Super-big IPOs may suck 130 billion yuan from the A-share market in the next half year. Three big IPOs have been approved, but not yet listed," Yu Fenghui, an independent financial commentator, said on Weibo yesterday. But he didn't mention the firms.
China International Capital Co, one of the nation's largest investment banking and research service firms, said in its latest report: "The stock market continues to see a weak capital supply. The liquidity crunch will continue to weigh on the index."
Banks fell as investors speculated the lenders' profitability is weakening after the government said yesterday it delayed the imposition of tighter capital rules to the start of next year.
The Industrial and Commercial Bank of China, the world's biggest lender by market value, shed 0.2 percent to 4.19 yuan. The Bank of China, the nation's third-biggest, shed 0.3 percent to 3.01 yuan, and China Citic Bank fell 1.2 percent to 4.10 yuan.
Coal producers also fell. China Shenhua Energy Co, the nation's biggest coal firm, lost 0.8 percent to 24.83 yuan. Yanzhou Coal Mining Co fell 1.4 percent to 21.16 yuan. Datong Coal Industry Co shed 0.7 percent to close at 12.21 yuan.
7 large-cap firms waiting to list in Shanghai:
Shaanxi Coal Industry Co: The China Securities Regulatory Commission approved its 17.3 billion yuan IPO on August 29, 2011.
CITIC Heavy Industries Co: The CSRC approved its 4.13 billion yuan IPO on March 30, 2012.
China Post: The CSRC approved its 9.98 billion yuan IPO on May 4, 2012.
Huaibei Mining Co: IPO to raise over 6 billion yuan, according to the prospectus published by the CSRC on April 24, 2012.
China National Building Material Group Co: Plans to raise 15 billion yuan via an IPO, the Information Times reported.
China Railway Materials Commercial Co: IPO to raise 14.7 billion yuan, China SME Online said on November 14, 2011.
PICC Group: To raise 10 billion yuan, according to China Securities Journal.
The Shanghai Composite Index shed 0.71 percent to 2,293.13 points.
One of the possible huge IPOs is that of China National Nuclear Power Co, which has been approved by the environment ministry on Tuesday, to raise funds to finance a total of 173.5 billion yuan (US$27.5 billion) of projects. It's the first IPO by a developer of atomic energy in China.
"Super-big IPOs may suck 130 billion yuan from the A-share market in the next half year. Three big IPOs have been approved, but not yet listed," Yu Fenghui, an independent financial commentator, said on Weibo yesterday. But he didn't mention the firms.
China International Capital Co, one of the nation's largest investment banking and research service firms, said in its latest report: "The stock market continues to see a weak capital supply. The liquidity crunch will continue to weigh on the index."
Banks fell as investors speculated the lenders' profitability is weakening after the government said yesterday it delayed the imposition of tighter capital rules to the start of next year.
The Industrial and Commercial Bank of China, the world's biggest lender by market value, shed 0.2 percent to 4.19 yuan. The Bank of China, the nation's third-biggest, shed 0.3 percent to 3.01 yuan, and China Citic Bank fell 1.2 percent to 4.10 yuan.
Coal producers also fell. China Shenhua Energy Co, the nation's biggest coal firm, lost 0.8 percent to 24.83 yuan. Yanzhou Coal Mining Co fell 1.4 percent to 21.16 yuan. Datong Coal Industry Co shed 0.7 percent to close at 12.21 yuan.
7 large-cap firms waiting to list in Shanghai:
Shaanxi Coal Industry Co: The China Securities Regulatory Commission approved its 17.3 billion yuan IPO on August 29, 2011.
CITIC Heavy Industries Co: The CSRC approved its 4.13 billion yuan IPO on March 30, 2012.
China Post: The CSRC approved its 9.98 billion yuan IPO on May 4, 2012.
Huaibei Mining Co: IPO to raise over 6 billion yuan, according to the prospectus published by the CSRC on April 24, 2012.
China National Building Material Group Co: Plans to raise 15 billion yuan via an IPO, the Information Times reported.
China Railway Materials Commercial Co: IPO to raise 14.7 billion yuan, China SME Online said on November 14, 2011.
PICC Group: To raise 10 billion yuan, according to China Securities Journal.
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