Bubble fears trigger fall in equities

Mainland stocks appear to be heading for their steepest weekly loss since February 2009 as initial public offerings drained cash from the market and investors speculated the recent gains have gone too far.

The Shanghai Composite Index tumbled 3.7 percent on Thursday, taking its declines for the week to 7.4 percent, led by technology and consumer companies.

Analysts are increasingly warning the stock market is in a bubble that will burst after the gauge more than doubled in the past 12 months to reach its highest levels in seven years. IPOs this week will draw about 6.7 trillion yuan ($1.1 trillion) of bids, according to a Bloomberg survey of forecasters.