On Thursday, the Shanghai composite index ended at 1390.5, down almost 50 points on the day and way below the 1500 market that for months has been touted as a powerful resistance point. The immediate cause was the reaction to China Merchants bank's plans to issue a huge RMB 10 billion ($1.2 billion) convertible bond and the aftermath of the almost RMB 6 billion IPO of Huaxia Bank.