Chinese shares dip over IPO resumption concerns

Chinese shares closed lower on Wednesday, with the key Shanghai index falling to a six-month low, as reports of possible IPO resumption rekindled investors' concerns. The benchmark Shanghai Composite Index lost 0.73 percent, or 15.84points, to end at 2,143.45, a new six-month low after Thursday's 2.83-percent plunge. The Shenzhen Component Index fell 0.59 percent, or 49.62 points, to 8,421.24. Combined turnover on the Shanghai and Shenzhen bourses expanded to 148.0 billion yuan (24.0 billion U.S. dollars) from 143.4 billion yuan on the previous trading day. Wednesday's China Securities Journal reported the country's top securities regulator may resume approvals for initial public offerings as early as July, following a suspension of nearly eight months since last November. The news renewed investor worries over a share glut, analysts said. The ship manufacturing industry led Wednesday's falls, with the sub-index for the sector down 1.97 percent. China CSSC Holdings Ltd. fell 2.71 percent to reach 19.39 yuan per share. Most real estate developers declined after news reports that the Chinese government will soon expand a property tax trial scheme to more cities, including Beijing, Shenzhen, Nanjing and Hangzhou. Shanghai and Chongqing began to pilot the scheme in 2011. China Vanke, the nation's biggest property developer by market value, fell 2.39 percent to 10.19 yuan. Poly Real Estate Group Co., the second-largest property developer, shed 1.62 percent to 10.94 yuan. However, the alcoholic drinks sector bucked the downward trend by rising 2.59 percent. Kweichow Moutai Co.Ltd. climbed 1.66 percent to close at 194.83 yuan per share.