China’s stocks extended their steepest decline in nine weeks on Tuesday, as concerns about global monetary policies and increased stock supply continued to weigh on sentiment. The Shanghai Composite Index fell 0.2 per cent to 2,928.19. The benchmark had tumbled 2.6 per cent in the previous session on fears the Federal Reserve would not cut interest rates soon amid improved US jobs data and a slew of IPOs would drain liquidity. Hong Kong’s Hang Seng Index slid for a fifth session. It fell 0.8 per cent to 28,116.28. Traders also refrained from buying on dips before the release of a set of key economic data for June. The National Bureau of Statistics is expected to release June consumer and factory-gate inflation data on Wednesday, while trade figures are due on Friday. “The market hasn’t stabilised and the headwinds are still there, weighing on the market,” said Wu Kan, an investment manager at Soochow Securities in Shanghai. “Investors remain cautious.” As many as 23 companies will launch initial public offerings on the mainland’s exchanges this week. Of these, some 21 companies are seeking to list on the Science and Tech Innovation Board, also known as the Star Market, which will start trading from July 22. The 25 companies that have been approved by the Shanghai bourse to trade on the tech board plan to raise a combined 31.1 billion yuan (US$4.52 billion) from the IPOs – more than three times the amount raised from offerings so far this year. Energy and utilities stocks were the worst-performing sectors on Tuesday, while carmakers rallied on news that China’s car sales rebounded in June for the first time since May 2018. Stocks Blog: Markets fall amid turmoil from rate cut prospects and more IPO supply Seazen Holdings, the property developer whose chairman has been detained by police for allegedly molesting a nine-year-old girl, tumbled 8.9 per cent to 28.35 yuan (US$4.12). It had fallen by the 10 per cent daily limit for three consecutive sessions. Daily trading volumes surged to a record on Tuesday, with 282.7 million shares, or almost 13 per cent of the company’s outstanding shares, changing hands. Jiangling Motors surged by the 10 per cent daily cap to 19.71 yuan (US$2.86) and Great Wall Motor gained 5.4 per cent to 9.31 yuan (US$2.86). Sales of cars in the world’s biggest car market rose 4.9 per cent year on year in June, according to the China Passenger Car Association. In Hong Kong, Ping An Insurance Group led the decline among financial companies, dropping 1.6 per cent to HK$94 (US$12.04). Xiaomi slipped 1.1 per cent to HK$9.50 (US$1.22), bringing its decline from its debut exactly a year ago to 44 per cent.