Chinese shares tumble to 3 week low

Chinese shares dropped more than 1 percent on Monday to a three-week low as investors worried about a new wave of initial public offerings (IPOs). The benchmark Shanghai Composite Index dropped 21.32 points, or 1.05 percent, to finish at 2,005.18. The Shenzhen Component Index dropped 90.68 points, or 1.25 percent, to close at 7,151.49. Combined turnover shrank to 113.54 billion yuan (18.42 billion U.S. dollars) from 119.47 billion yuan on the previous trading day. Late Friday, two new companies appeared on a list of new IPO applications submitted to the country's securities regulator, the first new applications since December 2013. This prompted investor concerns about a surge in new IPO cases that will lead to the expansion of the country's stock market. The financial, coal mining and oil sectors were among the weakest in Monday's trade, with sub-indices for the sectors plunging 2 percent, 1.34 percent and 0.9 percent, respectively. The Industrial and Commercial Bank of China, the country's largest commercial bank, dropped 0.57 percent to 3.46 yuan. China Shenhua, the largest coal miner, retreated 1.53 percent to 14.18 yuan, while PetroChina, the largest oil and gas producer, dropped 0.52 percent to 7.59 yuan.