Economics
Chinese Stocks Drop on Economic, IPO Concerns; Small-Caps Rally
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China’s stocks fell to the lowest level in a week, led by commodity and financial companies, amid concern economic growth remains sluggish and that a flood of new share sales will lure funds from existing equities.
Jiangxi Copper Co. and PetroChina Co. led declines for material and energy shares in Shanghai, sliding at least 2.6 percent. Aluminum Corp. of China Ltd. retreated 8.6 percent after saying it wasn’t involved in a revamp of rare-earth companies linked to the parent. A preliminary gauge of Chinese manufacturing is scheduled to be released Thursday and will likely show a contraction. Small-company stocks rallied, with the ChiNext index surging 4.2 percent.