Eleven companies, including brokerage giant Guotai Junan Securities, started taking investor subscriptions and another nine will follow on Friday, tying up more liquidity.
The Shanghai Composite dropped 3.7% to close at 4,785.36.
Hong Kong's benchmark Hang Seng index closed down 0.2% at 26,694.6
The rest of Asian stocks were mostly lower after the Federal Reserve said there would be "only gradual increases" in interest rates by the end of the year if the US economy seemed strong enough.
The US central bank has kept its benchmark borrowing costs near record lows since 2008.
Japan's Nikkei 225 fell 1.1% to close at 19,990.82 and the broader Topix shed 1% to 1,616.66.
Stocks in Japan were also hit as the yen strengthened. The dollar slipped to 122.96 yen from 123.43 yen in New York trading.
In Australia, the benchmark S&P/ASX 200 closed 1.3% lower at 5,524.90.
However, South Korea's Kospi index bucked the trend, rising 0.3% to close at 2,041.88.
In the currency markets, the New Zealand dollar fell by 1% after the country reported its slowest pace of quarterly growth in two years.
New Zealand expanded by a seasonally adjusted 0.2% in the first three months of the year after a drought hit its farming sector.
The numbers were below market estimates and increased speculation that the Reserve Bank of New Zealand will cut interest rates again next month.
Meanwhile, shares of AirAsia rose by more than 9% after the Malaysian budget carrier defended its financial and accounting practices after they were questioned by a research firm.
AirAsia's shares have fallen by about 30% after GMT Research issued a report on the company on 10 June.
Mainland Chinese shares saw sharp falls as a huge wave of initial public offerings on Thursday put pressure on the market.