August 28, 2014 / 7:11 AM / 3 years ago

China shares fall to multi-week lows on drain for IPO batch

HONG KONG, Aug 28 (Reuters) - China shares slipped on Thursday as a batch of initial public offerings started taking subscriptions, diverting money from existing stocks and pulling down the indexes to multi-week lows.

The Shanghai Composite Index declined 0.6 percent at 2,195.82 points, the lowest close in three weeks. The CSI300 of the leading Shanghai and Shenzhen A-share listings was down 0.7 percent to close at a five-week low.

Chinese banks extended Wednesday’s losses. Agricultural Bank of China, joining two other major banks, late on Tuesday reported slowing profit growth and rising bad loans for the second quarter.

The country’s largest lender Industrial and Commercial Bank of China shed 1.4 percent, its biggest drop in three weeks. The other three of the “Big Four” banks slid between 1 and 2 percent.

China’s two biggest oil companies again lent support to the indexes. Sinopec Corp climbed 1.5 percent and PetroChina rose 0.3 percent ahead of its earnings due later in the day. (Reporting by Grace Li; Editing by Richard Borsuk)

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