Shanghai A shares ended lower for a third straight session Thursday as institutions cashed in stocks to buy new shares, the 21st Century Business Herald reported Friday.
The selloffs sent the benchmark Shanghai Composite Index down 2.98 percent, with five firms waiting to debut and together absorb more than 150 billion yuan (US$24.4 billion), according to calculations based on announcements by these companies.
The five are Shandong Longda Meat Foodstuff Co., Ltd. (002726.CN), Feitian Technologies Co., Ltd. (300386.CN), Wuxi Xuelang Environmental Technology Co., Ltd. (300385.CN), Shanghai Lianming Machinery Co., Ltd. (603006.CN) and Guangdong Ellington Electronics Technology Co., Ltd. (603328.CN).
“The dive in A shares was mainly attributed to subscriptions for new shares. Many institutions need to sell stocks to raise cash and then pay for new shares,” a manager at a major fund company was quoted as saying, adding that the company had cut its stock positions from 80 percent to less than 70 percent of its investments.
Public funds, private funds and securities brokers have all been busy cashing up over the past three trading days, it said.
Exchange data showed that net capital outflows reached 6.9 billion yuan on the Shanghai and Shenzhen markets on Wednesday alone, with more than 500 million yuan flowing out of each of the chemical, computer and pharmaceutical sectors, the paper said.
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