China’s Stocks Cap Biggest Three-Day Retreat in Almost Two Years
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China’s stocks capped their biggest three-day retreat since June 2013 on concern valuations are too high given an increasing supply of shares and prospects for a regulatory clampdown on margin trading.
Utilities and industrial companies, which posted the biggest gains in Shanghai in the past three months, led declines. China Railway Group Ltd. and Huadian Power International Corp. dropped at least 9 percent. PetroChina Co. and shipping companies lost more than 3 percent before Friday’s trade data. The interest rate for overnight loans on the Shanghai Stock Exchange surged to a three-week high as investors borrowed to bid on initial public offerings.