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Index at over 6-month low on likely IPO restart
Aggregated Source: Shanghai Daily: Business

SHANGHAI stocks yesterday slumped to a more than six-month low after China's securities regulator said initial public offerings may resume at the end of July after a nearly eight-month suspension.

The Shanghai Composite Index lost 0.73 percent to 2,143.45 points, the lowest close since December 13.

The China Securities Regulatory Commission told brokerages on Tuesday that it is almost certain the IPO resumption will occur at the end of next month.

Chen Li, analyst with UBS Investment Research, said in a report yesterday that the resumption of IPOs "will hurt investor sentiment and affect market performance in the short term."

At the end of May, 666 companies were waiting to launch IPOs on the Shanghai and Shenzhen stock exchanges. China has not approved any new IPOs since November as it cracked down on false disclosures and profit manipulation.

Wind Information Co disclosed that 83 applicants who have passed the IPO review process plan to raise a total of 60 billion yuan (US$9.8 billion).

Banks led the decline yesterday, with the Industrial Bank losing 2.5 percent to 16.22 yuan. China Minsheng Banking Corp dropped 2 percent to 9.75 yuan.

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