* HSI -0.1 pct , H-shares +0.1 pct, CSI300 -0.2 pct
* Sinopharm, Xingrong Investment fall after saying officials
* China property slide after ministry land use guidance
* Chalco soars after positive profit alert
By Clement Tan
HONG KONG, Jan 13 China shares failed to take
any cheer on Monday from the postponement of five initial public
offerings, weighing on Hong Kong markets, as weakness in
property counters offset strength in Aluminum Corporation of
Five Chinese firms announced on Monday that they were
delaying their planned A-share IPOs after the China Securities
Regulatory Commission said overnight it would strengthen
supervision of new listings, saying it would conduct random spot
checks of book-building and road shows.
"There's a general feeling that the changes made to the IPO
system have fallen short of the regulator's stated aim to make
the process 'fair, open and just'," said Zhang Qi, a
Shanghai-based analyst with Haitong Securities.
"The pricing gap between the highest and lowest bids remains
too big and this points at several underlying structural issues
that have yet to be addressed. And unless they are, nothing will
change in a meaningful way," Zhang added.
At midday, the CSI300 of the largest Shanghai and
Shenzhen A-share listings was down 0.2 percent, while the
Shanghai Composite Index slipped 0.1 percent. Both are
now down about 5 percent since the start of the year.
The Hang Seng Index was down 0.1 percent at 22,832
points. The China Enterprises Index of the top offshore
listings, which was up more than 1 percent in one point, went
into the lunch break up 0.1 percent.
Chengdu Xingrong Investment slumped 8.3 percent
in Shenzhen after the company said its acting general manager
Zhang Ying has been detained by local police.
Shares of Sinopharm Group Co Ltd fell 2.4 percent
in Hong Kong after China's largest pharmaceutical distributor
said its former vice president has been detained as part of a
probe into alleged corruption, the latest industry official to
come under scrutiny.
Chinese property counters were on the defensive after the
Ministry of Land and Resources announced at its annual work
meeting last Friday new land supply in cities with populations
exceeding 5 million and said that new land supply will focus on
Credit Suisse property analyst Du Jinsong said in a client
note dated Monday that this will increase the cost of industrial
land, while homebuilders may suffer from land re-pricing from
any conversion of industrial land for residential purposes.
China Vanke fell 2.6 percent to its lowest since
January 2012 in Shenzhen and have now tumbled 10.5 percent this
year after sliding 20.7 percent in 2013. China Resources Land
fell 2.1 percent from a month-high in Hong Kong.
Power Assets shed 1.2 percent after it slashed the
size of a Hong Kong initial public offering of its electricity
business by nearly one-third to $3.6 billion because of a lower
expected valuation and its decision to keep a large stake in the
There were gains for Aluminum Corporation of China (Chalco)
, whose shares soared 8.2 percent in
Shanghai and 6.2 percent in Hong Kong after the company said it
expects to swing back into profitability for 2013 from a year
Founder Securities shares, trading for the first
time since Aug. 23, climbed 2.9 percent in Shanghai after it
announced it was acquiring the unlisted China Minzu Securities.