Thursday 21 September 2017

China posts second-straight weekly decline as shares slide

Currently, foreign carmakers must form joint ventures in China to make cars locally, but overseas component makers are not subject to any ownership requirements
Currently, foreign carmakers must form joint ventures in China to make cars locally, but overseas component makers are not subject to any ownership requirements

China shares slid on Friday, led by the brokerage sector after a small drug maker postponed listing plans, after calling its share sale "too big."

Thomson Reuters IFR reported that the China Securities Regulatory Commission pressured Jiangsu Aosaikang Pharmaceutical Co Ltd to delay its listing, a move seen as rare since it came in the advanced stages of the listing process.

The CSI300 of the biggest Shanghai and Shenzhen A-share listings ended down 0.8 percent at 2,204.9 points, its lowest closing level since July 31. The Shanghai Composite Index sank 0.7pc.

The indexes suffered their second-straight weekly decline and their biggest since the week that ended Dec. 20, sliding 3.8 and 3.4pc, respectively.

Investors fretted over how the resumption of A-share IPOs after a halt of more than a year will inject more competition for funds at a time of tightening money supply in the mainland.

Online Editors

Also in Business