August 26, 2014 / 7:11 AM / 3 years ago

China shares fall as money diverted for coming IPOs

HONG KONG, Aug 26 (Reuters) - China shares fell on Tuesday, as a batch of initial public offerings (IPOs) that start taking subscriptions later this week divert money from existing stocks.

The Shanghai Composite Index closed down 1 percent at 2,207.11 points in its worst day since Aug. 7. The CSI300 of the leading Shanghai and Shenzhen A-share listings slid 0.8 percent to its lowest close in almost a month.

In Shanghai, PetroChina surrendered Monday’s gains with a drop of 0.5 percent. Bank of China was off 0.7 percent.

Growth stocks were hammered including recent outperforming media companies. The ChiNext Composite Index of startups in mainly nascent industries listed in Shenzhen, which hit a record high on Friday, sank 2.3 percent.

Home appliance makers were underperformers. Gree Electric Appliances of Zhuhai, Midea Group and Qingdao Haier shed more than 2 percent.

Despite recent good earnings, the sector has been under pressure from a slowdown in the country’s property market. (Reporting by Grace Li; Editing by Richard Borsuk)

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