Shanghai stocks slid on Friday and posted their third straight weekly fall on concerns the listings of big-cap "unicorns" could drain liquidity from the market, and amid uncertainty over trade relations. The blue-chip CSI300 index fell 1.3 percent, to 3,779.62 points, while the Shanghai Composite Index was lower by 1.4 percent at 3,067.15 points.
For the week, CSI300 was up 0.2 percent, while SSEC was down 0.3 percent. Sectors fell across the board, led by banking and real estate.
Foxconn Industrial Internet Co Ltd (FII), a unit of the world's largest contract manufacturer, became China's biggest domestically listed tech company by market cap as its shares soared a maximum 44 percent on debut. "The listings of big-cap unicorns, such as Foxconn Industrial Internet, will have a negative impact on the liquidity conditions of the stock market," said Chen Xiaopeng, an analyst with Sealand Securities.
"The financing need from China Depositary Receipts, or CDRs, could have an even worse impact," added Chen. ** The domestic flotation of offshore-listed tech giants via CDRs could generate a financing need ranging from 116 billion yuan to 528 billion yuan, according to calculations of Chen Guo, an analyst with Essence Securities.
China has adopted new rules governing the issuance of CDRs that will allow the domestic flotation of overseas-listed innovator.
Adding to worries was the uncertainty over trade relations ahead of a key meeting of global leaders.
Leaders of the Group of Seven rich nations are set to clash with a combative US President Donald Trump on Friday when they pressure him to lift sanctions on steel and aluminium they fear could lead to a trade war.
The largest percentage gainers on the main Shanghai Composite index were Youon Technology Co Ltd up 10.01 percent, followed by Zhongyuan Union Cell & Gene Engineering Corp Ltd gaining 10 percent and Suzhou Chunqiu Electronic Technology Co Ltd up by 9.98 percent.
The largest percentage losers on the Shanghai index were Henan Yinge Industrial Investment Co Ltd down 10.04 percent, followed by Henan Ancai Hi-tech Co Ltd losing 8.78 percent and Jinneng Science & Technology Co Ltd down by 7.68 percent.
So far this year, the Shanghai stock index is down 7.3 percent, the CSI300 has fallen 6.2 percent, while China's H-share index listed in Hong Kong is up 4 percent. Shanghai stocks have declined 0.92 percent this month.
About 13.47 billion shares were traded on the Shanghai exchange, roughly 101.4 percent of the market's 30-day moving average of 13.28 billion shares a day. The volume in the previous trading session was 12.78 billion.