Shanghai Composite falls 0.6% ahead of IPOs

Mainland China equity market closed lower for second straight session on Monday, 18 May 2015, amid concerns over new share listings this week and as data showed further declines in China's house prices. The Shanghai Composite Index declined 25.20 points, or 0.58%, to finish at 4283.49 points. The CSI300 index reduced by 42.33 points, or 0.92%, to 4575.14.

Big-cap stocks were under pressure as pressure as 20 initial public offerings (IPOs) scheduled to launch this week that could lock-up nearly 3 trillion yuan worth of subscription capital, as regulators move to accelerate IPO approvals. Tuesday will be the busiest day of the week for IPOs, with 12 companies starting to take subscriptions. That means some investors need to sell existing shares for cash to participate in IPO subscriptions.

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