June 8, 2018 / 7:16 AM / a year ago

Shanghai stocks post 3rd weekly fall on concerns over 'unicorns' listings

* Shanghai stocks lower, blue-chip CSI300 index down

* Gains in Shanghai stocks led by Youon Technology Co Ltd and losses by Henan Yinge Industrial Investment Co Ltd

* China’s A-shares are at 16.96 percent premium over H-shares

SHANGHAI, June 8 (Reuters) - Shanghai stocks slid on Friday and posted their third straight weekly fall on concerns the listings of big-cap “unicorns” could drain liquidity from the market, and amid uncertainty over trade relations. ** The blue-chip CSI300 index fell 1.3 percent, to 3,779.62 points, while the Shanghai Composite Index was lower by 1.4 percent at 3,067.15 points. ** For the week, CSI300 was up 0.2 percent, while SSEC was down 0.3 percent. ** Sectors fell across the board, led by banking and real estate. ** Foxconn Industrial Internet Co Ltd (FII), a unit of the world’s largest contract manufacturer, became China’s biggest domestically listed tech company by market cap as its shares soared a maximum 44 percent on debut. ** “The listings of big-cap unicorns, such as Foxconn Industrial Internet, will have a negative impact on the liquidity conditions of the stock market,” said Chen Xiaopeng, an analyst with Sealand Securities. ** “The financing need from China Depositary Receipts, or CDRs, could have an even worse impact,” added Chen. ** The domestic flotation of offshore-listed tech giants via CDRs could generate a financing need ranging from 116 billion yuan to 528 billion yuan, according to calculations of Chen Guo, an analyst with Essence Securities. ** China has adopted new rules governing the issuance of CDRs that will allow the domestic flotation of overseas-listed innovator. ** Adding to worries was the uncertainty over trade relations ahead of a key meeting of global leaders. ** Leaders of the Group of Seven rich nations are set to clash with a combative U.S. President Donald Trump on Friday when they pressure him to lift sanctions on steel and aluminium they fear could lead to a trade war. ** Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.32 percent, while Japan’s Nikkei index closed down 0.56 percent. ** At 07:00 GMT, the yuan was quoted at 6.4074 per U.S. dollar, 0.22 percent weaker than the previous close of 6.3931. ** The largest percentage gainers on the main Shanghai Composite index were Youon Technology Co Ltd up 10.01 percent, followed by Zhongyuan Union Cell & Gene Engineering Corp Ltd gaining 10 percent and Suzhou Chunqiu Electronic Technology Co Ltd up by 9.98 percent. ** The largest percentage losers on the Shanghai index were Henan Yinge Industrial Investment Co Ltd down 10.04 percent, followed by Henan Ancai Hi-tech Co Ltd losing 8.78 percent and Jinneng Science & Technology Co Ltd down by 7.68 percent. ** So far this year, the Shanghai stock index is down 7.3 percent, the CSI300 has fallen 6.2 percent, while China’s H-share index listed in Hong Kong is up 4 percent. Shanghai stocks have declined 0.92 percent this month.

** About 13.47 billion shares were traded on the Shanghai exchange, roughly 101.4 percent of the market’s 30-day moving average of 13.28 billion shares a day. The volume in the previous trading session was 12.78 billion. ** As of 07:00 GMT, China’s A-shares were trading at a premium of 16.96 percent over the Hong Kong-listed H-shares. (Reporting by Shanghai Newsroom; Editing by Subhranshu Sahu)

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