China Shares Fall As Investors Brace For More IPOs

SHANGHAI (AP) — Chinese shares fell Friday as a possible resumption of initial public offerings approaches, a move that might depress prices by flooding the market with new shares.

The benchmark Shanghai Composite Index dropped 13.35 points, or 0.5 percent, to close at 2,753.89. For the week, it rose 4.6 percent.

The Shenzhen Composite Index for the country's smaller, second exchange shed 0.4 percent to 917.21.

Investors turned cautious after the Shanghai index hit a ten-month high Wednesday.

Pressure loomed Friday as an opinion-seeking period declared by Chinese regulatiors before deciding whether to lift a moratorium on IPOs ended, analysts said.

"Today is a technical adjustment as investors sold on profit-taking, but in general they are worried the share prices will be dampened by IPOs," said Chen Jinren, analyst for Huatai Securities in the eastern city of Nanjing.

Aluminum Corp. of China, or Chinalco, edged up 0.7 percent to 12.47 yuan despite a decision by Anglo-Australian miner Rio Tinto PLC to scrap a planned $19.5 billion investment from Chinalco. Chinalco jumped 7.6 percent on Thursday amid a surge in commodity prices that has driven up stocks in Chinese metals and other resources suppliers.