Chinese Stocks Fall Most Since September, Pulling Back From 13-Year High

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China’s CSI 300 Index fell the most in four months Thursday, pulling back from a 13-year high, as investors rotated into some tech stocks that have lagged the broader market’s recent strength.

The CSI 300 closed 1.9% lower, with the consumer discretionary sector declining 3.8%, the most since July. Meanwhile, the Nasdaq-style Star50 index of companies listed in Shanghai closed 2.8% higher.

Recent gains had put the CSI 300 about 5% below its 2007 record high, raising valuation concerns especially among some high-flying sectors like consumer and electric vehicles. Money has been focused on recent winners, some of which saw sharp declines Thursday. Great Wall Motor Co. fell the 10% limit after having doubled in a month. Shanghai Yuyuan Tourist Mart Group Co. fell by the same amount.

Chinese Stocks Fall Most Since September, Pulling Back From 13-Year High

Chinese investors have also been heavy buyers of Hong Kong equities. Daily net purchases via trading links were on track to surpass HK$10 billion for the ninth consecutive day on Thursday, according to data compiled by Bloomberg, the longest streak since the start of the Shenzhen link in late 2016.

©2021 Bloomberg L.P.

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