Asian Markets: IPO mania drives China market down


Shares in China fell Tuesday, with the Shanghai Composite Index hitting a two-week low of 2,898 – a 2.3 percent drop.

Chinese stocks may be suffering from the overwhelming number of recent and upcoming Asian IPOs. Analysts say the new listings may be luring assets away from some stocks, as investors withdraw funds from existing portfolios to invest in the newly listed companies. Since June, when government regulators ended a nine-month ban on IPOs, 96.1 billion yuan has poured into Chinese IPOs, according to Bloomberg.