The mainland’s securities regulator will vet two applications for initial public offerings tomorrow, dashing investors’ expectations that it would stem the supply of equities to bolster the market.

The benchmark Shanghai Composite Index dropped 11.71 points, or 0.56 per cent, to 2,074.42 yesterday amid mounting worries of a further liquidity drain, when trading reopened after a nine-day holiday break.

The China Securities Regulatory Commission (CSRC) said yesterday that it would review IPO applications by Chongqing Gas and Shenzhen Suntak Circuit Technology tomorrow.