China’s New Economy Stocks Selling Off With the Old

Last year’s most-profitable bets on the Chinese economy have turned into money losers in 2014 as policy makers send mixed signals on which industries will lead the country’s expansion.

After surging at least 20 percent for the biggest gains in China’s stock market last year, gauges of technology, health-care and consumer shares have all lost more than 6 percent. The companies, tied to what analysts have dubbed China’s “new economy,” are now falling in tandem with “old economy” stocks in state sectors such as commodities and finance that fueled growth in the last decade. All 10 industries in the CSI 300 Index sank in the first half, the broadest losses in four years.