Share prices on China's Shanghai and Shenzhen bourses rebounded strongly in early morning but were off the peak in the afternoon session on Thursday as the restart of the second batch of ten new IPOs from Friday and the pending listing reform weighed on market liquidity.
The State Council, or China's cabinet, passed a draft document to allow authorities to transform the approval-based system in Shanghai and Shenzhen bourses to a registration-based one within two years, according to a statement released after the cabinet's executive meeting on Wednesday.
The China Securities Regulatory Commission (CSRC), the industry regulator, later, assured investors that the reform would not lead to speed-up of new share offering pace. For the whole day, the benchmark Shanghai Composite Index edged down 0.49 percent to end at 3,455.50 points.
The Shenzhen Composite Index went down 0.11 percent to end at 2,211.86 points. The index for small firms rose 0.23 percent to end at 8,134.48 and the ChiNext Index jumped 1.03 percent to end at 2,695.51.
Combined turnover of the two bourses expanded a little to 728.74 from 718.24 billion yuan on the previous trading day. Stocks of public transport, software, hotel, telecom operation, telecom equipment, securities brokerage and tourism sectors led the gainers on the day while those in shipbuilding, mineral product, aviation, nonferrous metals, property, iron and steel and coal sectors led the losers.
On the stock index futures market, the IF December contract fell 0.66 percent to end at 3,567.0, keeping a discount of 56.08 points to the underlying Hushen 300 Index, which edged down 0.1 percent to end at 3,623.08. The SSE 50 December contract lost 0.89 percent to end at 2,329.0, keeping a discount of 28.21 points to the underlying SSE 50 Index, which fell 0.4 percent to close at 2,357.21.
The CSI November contract lost 0.37 percent to end at 7,170.0, keeping a discount of 180.21 points to the underlying CSI 500 stock index, which went down 0.33 percent to end at 7,350.21.
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