Shares dip after IPO return news

Stock markets in Shanghai and Shenzhen drifted back into losses Wednesday following reports that IPOs may resume as early as next month.

The Shanghai Composite Index surrendered 15.84 points, or 0.73 percent, to close at 2,143.45; while the Shenzhen Component Index slumped 0.59 percent, or 49.62 points, to close at 8,421.24.

Combined turnover at the two exchanges rose to 152.7 billion yuan ($24.91 billion) Wednesday, up modestly from Tuesday's 143.4 billion yuan.

Both indices opened lower after media reports quoted Yao Gang, vice chairman of the China Securities Regulatory Commission (CSRC), as saying Tuesday that IPOs are "almost certain" to return to mainland markets at the end of July. Since regulators halted approvals on new public floats back in October 2012, mentions of IPO resumption in the media have typically sparked jitters centering on market liquidity and investor confidence.

Contractions in real estate stocks also contributed to Wednesday's early losses. Strong performances from financial shares helped relieve the downward pressure as mid-day approached.

Gains in steel, brewing and electronic stocks later in the afternoon buoyed the Shanghai Composite and the Shenzhen Component back toward the break-even point.

Listed coal producers also notched respectable advances later in the day after slipping out of the gate. Gansu Jingyuan Coal Industry & Electricity Power Co jumped 5.92 percent to 10.37 yuan. Shanxi Meijin Energy Co edged up 3.55 percent to 6.70 yuan.

Among steel makers, Chongqing Iron & Steel Co climbed by the daily limit to close at 2.70 yuan on the day.