Most Chinese stocks fell as some investors speculated this year’s rally in equities was excessive relative to earnings growth prospects.
More than five stocks declined for every three that rose in the Shanghai Composite Index, which was little changed at 2,446.57. The gauge closed at its the highest level since Nov. 17 yesterday. The CSI 300 Index gained 0.1 percent to 2,659.4. The Bloomberg China-US 55 Index, the measure of the most-traded U.S.-listed Chinese companies, lost 0.7 percent in New York.
“The run-up is a bit fast and the pressure for a correction is increasing,” said Wu Kan, a Shanghai-based fund manager at Dazhong Insurance Co., which oversees $285 million. “The market needs a break here and we also need to see coming economic data will be good to justify the rally. Trading will be volatile going forward.”
To contact the editor responsible for this story: Darren Boey at email@example.com