Mainland stock markets plunge on concerns of new IPOs

Stock markets in the Chinese mainland saw a big slump on Thursday, falling for the third consecutive day.

The benchmark Shanghai Composite Index inched down by 31.78 points or 1.55 percent to 2,023.74 points on Thursday.

The Shenzhen Component Index nudged down by 117.08 points or 1.60 percent to 7,180.32 points on Thursday.

The combined turnover on the two bourses on Thursday was 176.50 billion yuan ($28.32 billion), up from the previous trading day's 168.58 billion yuan.

All sectors saw decline on Thursday, with the IT and media companies sliding the most amid concerns that new IPOs would divert funds from existing stocks.

Four companies including Shanghai Lianming Machinery Co aim to raise almost 300 billion yuan in Shanghai and Shenzhen exchanges, becoming the first set of companies listed after four months of hiatus.

China Vanke Co, the country's biggest developer by sales, shed by 1.36 percent to 7.99 yuan and its rival Poly Real Estate declined by 0.81 percent to 4.91 yuan on Thursday. Data on housing prices published on Wednesday dampened investors' sentiment.

Home prices in 35 out of 70 Chinese cities tracked by the National Bureau of Statistics (NBS) witnessed a monthly drop in May, compared with eight cities in April, according to the NBS.

The IT sector was the worst performer on Thursday, falling almost 4 percent.

Beijing VRV Software Corp and Beijing Watertek Information Technology Co, both listed in ChiNext, China's NASDAQ-style board for high-tech and fast-growing start-ups listed in Shenzhen, plunged by the daily limit of 10 percent to 19.82 yuan and 19.04 yuan, respectively.

The index plummeted by 43.34 points or 3.18 percent to 1,320.66 points on Thursday, after declining almost 4 percent during the trading.