China shares drop over 1 percent, economy worries weigh

Reuters

BEIJING (Reuters) - China stocks dropped more than 1 percent on Monday, hit by concerns about a potential share oversupply after the securities regulator released draft prospectuses for 28 new firms planning to list, marking the resumption of IPOs after a two-month hiatus.

The news unnerved investors further after a flurry of data last week gave more indications of a slowing economy, including in several key sectors such as real estate.

The Shanghai Composite Index ended down 1.5 percent at 2,065.83 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings declined 1.7 percent.

Energy stocks bucked the trend after Premier Li Keqiang announced major projects in the sector would be rolled out soon, focusing on energy transmission, and cleaner energy sources such as hydro power.

Chongqing Three Gorges Water Conservancy and Electric Power Co Ltd jumped 10 percent, its daily trading limit, for its biggest one-day gain in more than 1-1/2 years. TBEA Co Ltd climbed 1.3 percent.

The Hong Kong stock exchange was closed on Monday for the Easter holiday.

(Reporting by Natalie Thomas; Editing by Chris Gallagher)

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