Stock markets slump amid more IPOs

Stock markets in the Chinese mainland continued to fall on Monday amid concerns that more companies than expected are receiving approval to launch IPOs.

The benchmark Shanghai Composite Index declined by 37.43 points or 1.80 percent to 2,045.71 points on Monday. The Shenzhen Component Index fell by 209.87 points or 2.61 percent to 7,818.46 points.

Combined turnover on the two bourses on Monday was 179.96 billion yuan ($29.72 billion), down from Friday's 182.6 billion yuan.

On Monday, the China Securities Regulatory Commission (CSRC) approved 11 more IPOs, triggering concerns among investors that faster-than-expected IPOs could cause short-term liquidity tightness. The CSRC approved 16 IPOs last week.

The fall in the stock markets also coincided with the release of data indicating a slowdown in the services sector. HSBC Holdings said Monday that its China services Purchasing Managers' Index decreased to 50.9 in December from 52.5 in November.

The biggest losers on Monday were in the agriculture, real estate, media, and coal sectors. But oil companies and insurers bucked the downward trend.

Shares in developers fell following a report last week by the National Audit Office, which showed that local government debt swelled to 17.9 trillion yuan as of June. As the central government has vowed to address the debt issue, market watchers expect investment by local governments to be reined in.

Shanghai-listed Poly Real Estate Group dipped 5.67 percent to 7.65 yuan while Shenzhen-listed China Merchants Property Development Co fell by 5.35 percent to 19.11 yuan.

China's largest coal producer, Shenhua Group Corp, and China Coal Energy Co lowered their prices starting from January 1, amid rising stockpiles.

Guizhou Panjiang Refined Coal Co fell by 6.63 percent to 6.48 yuan while Beijing Haohua Energy Resource Co fell by 5.43 percent to 6.62 yuan.

ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, also ended lower on Monday, falling by 29.51 points or 2.18 percent to 1,323.33 points.