Shanghai shares dip after property and financial counters fall

Shanghai stocks dipped today, led by declines in property and financial counters.

The Shanghai Composite Index lost 0.62 percent to close at 3,317.19 points.

Shares of property developers, financial firms and infrastructure companies were among the biggest decliners today. 

Shanghai Jinjiang International Hotels Development Co Ltd tumbled 5.21 percent to 29.85 yuan (US$4.5), Shanghai New Huang Pu Real Estate Co Ltd fell 3.92 percent to 16.90 yuan, and Greenland Holdings Co Ltd declined 3.08 percent to 7.23 yuan.

Investor sentiment was weak after the key market index slumped to a 3-month low on Monday. Sentiment also dimmed after three companies failed to pass an initial public offering vetting by a trial review committee set up by the China Securities Regulatory Commission in September to enhance  scrutiny of the IPO reviewing process, according to the statement published on the website of the CSRC on Wednesday night.

Shanghai Securities News reported that the failure signaled tighter scrutiny and supervision on IPOs by the authorities.

“Investor appetite weakened amid a changing market environment and tighter scrutiny of IPOs. Investors also turned cautious because of tight liquidity and some chose to lock in profits instead of buying shares,” said Qin Hong, an analyst with Jingbailing Consulting firm.