China’s stocks fell the most in two weeks as health-care and property companies slumped amid speculation recent gains were overdone, and concern grew initial public offerings will divert funds away from existing equities.
The Shanghai Composite Index dropped 0.7 percent to 3,612.49 at the close, capping the steepest loss since Dec. 8. Drugmaker Beijing Tongrentang Co. and developer Gemdale Corp. plunged at least 6.9 percent. The overnight repurchase rate jumped to the highest level in three months. Trading volumes in Shanghai were 16 percent below the 30-day average, with most regional markets shut for the Christmas holidays.
The eight companies that began their share subscription this week will freeze as much as 1.5 trillion yuan ($230 billion), according to China International Capital Corp. Nearly every time a new batch of companies took orders in the past year, money-market rates climbed and the Shanghai Composite slumped as investors hoarded cash for their bids. Thanks in large part to a regulatory ceiling on valuations, the average IPO surged from its offering price. The overnight repurchase rate rose two basis points to 1.91 percent in Shanghai on Thursday, the highest since Sept. 30.
“Trading volume in China has been declining since the start of December, which could mean that the Shanghai Composite may not be making much headway in either direction for the rest of the year,” said Bernard Aw, a strategist at IG Asia Pte. in Singapore. “The index is still firmly on a upward trajectory since September, although anyone hoping it will end the year above 4,000 will be sorely disappointed.”
Shares of China Information Technology, Inc. – Ordinary Shares (NASDAQ:CNIT) traded up 22.35% during last trading session on a U.S. exchange, closing at $2.19. The company now has a market value of $73.43million. The stock, after recent close, is 117.92% above their SMA 50 and -70.20% below the 52-week high. The worst hit in its 52 week range is $0.68 per share, with $7.35 as its 52 week best price.
Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) closed U.S. trading at $49.14, up 1.26% from previous close. The year-to-date (YTD) performance reflected a 116.00% above last year. During the past month the stock loss-11.14% bringing three-month performance to 47.35% and six-month performance to 33.08%. For this company, beta value at 1.59 represents it is more volatile to the shift in the market.
JD.Com Inc (ADR) (NASDAQ:JD) settled at $32.54 during New York trading, up 0.03% from previous close and at a distance of 3.13% from 20-day simple moving average. In the last trading session, the stock’s price moved 6.33% below its 200 day moving average. The stock is currently trading 10.74 above its SMA 50. To measure price-variation, we found this stock’s volatility over a week period was 2.65% and for the month was 3.00%.