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China: Stocks end lower, telecom sector drags
[SHANGHAI] China stocks ended lower on Monday, with the telecoms sector leading declines and as investors remained cautious ahead of a fresh batch of listings.
The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.6 percent, to 3,753.34, while the Shanghai Composite Index lost 0.5 per cent, to 3,610.31 points.
Ten Chinese companies published prospectus filings on Monday indicating they would raise a combined 3 billion yuan (S$665.50 million) via share sales, as China resumes initial public offerings, which were suspended during the summer market rout.
Although the IPOs had been expected for some time, while the total amount of fundraising appears relatively small, the weak afternoon performance underscores investor caution after the market's strong rally since September.
But there were few signs of panic, as some investors are starting to believe the economy could be near its bottom, after a slew of government measures to support growth.
Zhou Jintao, chief economist of China Securities Co, predicted that China's economy will likely hit bottom in the first quarter next year, saying cyclical stocks are now worth investing in.
All main sectors fell on Monday, with the exception of health care stocks.