China NASDAQ Stocks Plunged as Investors took in Profits
As of yesterday china NASDAQ style stocks ChiNext board to a plunge of more than 8 percent as investors took in profit on out performers this year in anticipation of an initial public offering reform that was announced a few days earlier that opened a floodgate of new listings. The CSI300 of the Shanghai and Shenzhen A share list ended with a .8 percent at a 2,418.8 points and the Shanghai Composite Index is at .6 percent in the strongest volume since September.
Almost 400 stocks in the Shanghai and Shenzhen plunged by their daily limits that are 10 percent of most stocks and 5 percent of designated as special treatment in poorly operated companies that are risk of being delisting. Brokerages soon jumped on the chance as the China Securities Regulatory Commission announced a long awaited measures that was intended to streamline its initial public listing process in China but no new listing approval is seen as of October 2012.
The move that happened a few days earlier is a signal that the IPO process is set to resume by next year as regulators are expecting a first batch of 50 companies to list itself by January 2014. Large caps especially banks are buoyed by new rulings that mandates cash dividends paired by the State Council announcement on the possible start of a shared pilot scheme.