Chinese stocks tumble as IPOs approach

Chinese shares closed lower on Monday, dragged down by grim market sentiment after the securities regulator moved to restart initial public offerings (IPOs).

The benchmark Shanghai Composite Index dropped 1.62 percent to finish at 2,003.49, while the Shenzhen Component Index fell 1.14 percent to close at 7,240.46.

More than 80 percent of all the over 2,000 companies listed on China's A share market declined on Monday, with nearly a hundred hitting the 10-percent daily limit.

China Securities Regulatory Commission (CSRC) announced on March 25, the previous trading day, a restart the IPO review on Wednesday for the application of four companies.

The CSRC released prospectuses for 28 pre-IPO firms on April 19, the first preliminary information disclosure since 2010. It dented investor confidence and boosted concern of pressure on the bearish stock market.

As of last Friday, 122 prospectuses had been released to the public.

Companies related to environmental protection and furniture led the decline, with their sub-indices dropping by 4.41 percent and 4.28 percent, respectively. Iron and steel makers also suffered as nearly all the sector's listed firms fell on Monday, More than 45 percent of China's steel companies reported losses in the first quarter of 2014.

One of China's steel giants Baoshan Iron and Steel Co. slipped 0.26 percent to finish at 3.88 yuan (0.63 U.S. dollars), while Inner Mongolia BaoTou Steel Union Co. down 2.12 percent at 3.7 yuan.

The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, lost 2.68 percent, or 34.64 points, to end at 1,257.26 points on Monday.