China Stocks Swing as IPO Lockup Concern Counters Bank Advance

China stocks swung between gains and losses as an advance in financial companies countered concern a flood of new share sales will divert money from existing equities.

The CSI 300 Financial Index advanced 3.2 percent as Bank of Communications Co. jumped by the daily 10 percent limit. Beijing Dabeinong Technology Group Co. and Yonghui Superstores Co. fell at least 1.4 percent as consumer stocks dropped. Leshi Internet Information & Technology (Beijing) Co., the biggest mainland-listed Internet video provider, fell 1.7 percent after its chairman sold shares in the company.

The Shanghai Composite Index rose 0.3 percent to 4,926.62 at 10:41 a.m. local time after changing direction six times. China National Nuclear Power Co., the country second-biggest atomic power operator, locked up 1.69 trillion yuan ($ 273 billion) in bids for its IPO, according to a company statement posted on the Shanghai Stock Exchange website. Bank of Communications Co. may get State Council approval for its final mixed-ownership reform plan within two weeks, according to people familiar with the matter.

Source : Bloomberg

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