China: Stocks slump as technology firms sink on valuation concern

[SHANGHAI] China's stocks fell as a gauge of technology shares sank on concern recent gains have been too far, too fast.

The Shanghai Composite Index slid 1.8 per cent to 4,822.42 at the 11:30 am local-time break after changing direction about seven times. A gauge of hi-tech companies sank 3.6 per cent, paring its gain this year to 124 per cent. Shares also declined amid concern a flood of new equity sales will lure liquidity from existing stocks.

China National Nuclear Power Co., the country's second- biggest atomic power operator, locked up 1.69 trillion yuan (S$367.7 billion) in bids for its IPO, according to a company statement posted on the Shanghai Stock Exchange's website.

BLOOMBERG