China Bulls Lured by State Support Are Already Sitting on Losses
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The biggest intraday surge in Chinese stocks since 2008 has turned into a money-losing day for investors who piled in at the height of a rally sparked by government measures to prop up prices.
The Shanghai Composite Index, which jumped 7.8 percent at the open on Monday, pared its advance to 2.4 percent by the close. More than 800 of the index’s 1,106 shares are now trading lower than their volume-weighted average prices. The ChiNext index of small-cap stocks lost 4.3 percent, while the Shenzhen Composite Index sank 2.7 percent.