Stocks fall as regulator gives green light to new offerings

Chinese stocks fell as Guotai Junan International Holdings Ltd plunged in Hong Kong after the brokerage said it can't contact its chairman, while technology companies slumped in Shanghai as the securities regulator gave the green light to initial public offerings following a five-month freeze.

Hong Kong's Hang Seng China Enterprises Index dropped 0.7 percent to 10,229.43 at the close. The Shanghai Composite Index fell 0.6 percent as software companies slumped amid speculation investors are selling the priciest stocks to raise funds for new share offerings.

The China Securities Regulatory Commission has restarted IPOs for five companies to list on the Shanghai Stock Exchange and five in Shenzhen. The 28 companies in total that will be allowed to proceed with their IPOs by the end of 2015 after being halted mid-year following a $5 trillion rout will probably tie up 3.4 trillion yuan ($533 billion), according to the median of six analyst estimates compiled by Bloomberg. Nearly every time a new batch of companies took orders over the past year, money-market rates climbed and the Shanghai Composite slumped as investors hoarded cash for their bids.