| Shanghai shares extend four-day setback |
SHANGHAI, Feb. 2 -- Shanghai shares extended a four-day drop today amid concerns of an overvalued market and the coming of new shares sales.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard currency B shares, slid 4.03 percent, or 112.22, to 2,673.21 today.
"An expectation of market adjustments is luring in the market these days," said Chen Qun, a West China Securities Co analyst. "It is a concern that the market has rallied beyond its real value, triggering jitteriness over the expected short-term adjustments."
The financial and real estate market led the slide today.
Bellwether Industrial and Commercial Bank of China, the country's biggest lender, tumbled 3.6 percent to 4.82 yuan (62 US cents). China Life Insurance Co, the country's top insurer, dropped to 35.99 yuan, down 7.24 percent.
The market is likely to fluctuate amid a bearish sentiment next week as investors grow fearsome of government measures to cool the market, Chen noted.
The barometer may dip to 2,500 next week.
She also noted that the long-term bullish sentiment is unchanged but retail investors may find the short-term adjustment painful.
Besides, the coming of the new shares sales also pushes some investors to drain capital for initial public offerings.
Ping An Insurance (Group) Co, the country's second biggest insurer, started its initial public offering today. The Shenzhen-based insurer plans to sell as many as 1.15 billion shares in the Shanghai Stock Exchange.
The insurer kicked off its four-day road show, to assemble investors for price bids, since today in cities like Shanghai, Shenzhen, Guangzhou and Beijing.
Buying new shares is eyed as less risky among retail investors and ample capital is one guarantee for successfully getting the shares at offered prices.
Meanwhile, Industrial Bank Co said today it will become listed in Shanghai on Monday. Retail investors poured 937.4 billion yuan, or 129 times over the shares offered to them, to buy yuan-denominated A shares of Industrial Bank Co.
Poly Real Estate Group Co, China's largest state-owned developer, plunged 8.48 percent to 38.64 yuan. Shanghai Lujiazui Finance & Trade Zone Development Co tumbled 5.35 percent to 15.2 yuan.
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