Leo Zhang/Shanghai Daily news

A media report on the resumption of new share sales spooked Shanghai stocks yesterday, fanning worries a possible equity glut may hurt sentiment.
The Shanghai Composite Index, which tracks yuan-denominated A shares and foreign-currency B shares, slumped 2.36 percent to 1,159.96.
The A-share Index tumbled 2.37 percent to 1,218.72 and the B-share Index eased 1.77 percent to 67.14.
"Any news related to more equity offers may easily trigger a market decline as the government is on track to dump state stockholdings," said Lu Chengde, a Guosen Securities Co trader.
Financial regulators are currently drafting rules to resume initial public offerings and additional stock and bond sales on Chinese bourses, the National Business Daily reported yesterday, citing unidentified brokers.
In May, China revived a twice-scrapped plan to trim as much as US$250 billion of government ownership in more than 1,300 public companies.
China Minsheng Banking Corp  dived 4.29 percent to 5.58 yuan (69 US cents) yesterday. The company said it won't improve compensation to public investors in order to sell non-tradable shares.
China Merchants Bank Co retreated 1.55 percent to 6.37 yuan. Jiangxi Copper Co fell to 5.28 yuan.