It’s probably too early to say the party is over, but China’s stock exchanges certainly weren’t looking very festive yesterday. Despite China Construction Engineering holding the world’s largest initial public offering this year (so far), that wasn’t enough to keep investors excited. The Shanghai Composite Index fell 5% and the CSI 300, which covers markets in Shanghai and Shenzhen, fell 5.3%. The culprit? Fears of government intervention to cool market enthusiasm. Things were better at China Construction Engineering, which saw its shares rise 56% on their opening day. Cement producer BBMG also posted a 56% gain on its first day (in Hong Kong) – investor enthusiasm once again to blame, although this is underpinned by more substantial expectations of further government spending on infrastructure. China Pacific Insurance, meanwhile, is hoping to get in on the IPO action while the markets remain receptive to the idea. The company has reportedly chosen China International Capital Corp to underwrite its IPO in Hong Kong, expected to raise as much as US$3.5 billion. Outside of the markets, economic indicators remain mixed, and areas heavy on export-focused manufacturing continue to suffer. Case in point: Dongguan, Guangdong, where unemployment has risen by 10% since the start of the year. The city’s mayor has set aside emergency funding for enterprises hit by the downturn in exports. Perhaps because it remains unconvinced that China has developed a strong foundation for future growth, the central bank says it will not impose controls to restrict lending growth.