Chinese shares opened lower this morning as nine companies offered new shares, freezing trillions of funds. Online subscription for the nine companies including Shenyang Toly Bread Co. Ltd, Shenzhen Click Technology, and Shenzhen Qixin Construction Group will begin today, locking up as much as 3 trillion yuan (465 billion U.S. dollars).
Under current IPO rules, prospective investors still need to make full payment in advance. Shares related to Fosun resumed trading today after the company said its chairman Guo Guangchang has returned to Shanghai after assisting a legal investigation. Fosun's chief executive Liang Xinjun said in a conference call over the weekend that the group is operating normally.
Guo was seen at a Fosun meeting this morning, stocks in companies that Fosun has a controlling stake in slumped on opening today.
Shanghai Fosun Pharmaceutical (Group) on the Shanghai Stock Exchange opened down 6.74 percent, while Nanjing Iron & Steel Co., Shanghai Ganglian tumbled more than 5 percent at opening. Fosun is one of China's biggest private conglomerates. It has interests in pharmaceuticals, real estate, private equity, steel and mining.
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