China's Stocks Drop Most in Two Weeks as IPO Demand Saps Funds
- Trading volumes decline as regional markets shut for holidays
- Property developer Gemdale falls from record, Poly slides
China's Challenges: Key Themes to Watch in 2016
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China’s stocks fell the most in two weeks as health-care and property companies slumped amid speculation recent gains were overdone, and concern grew initial public offerings will divert funds away from existing equities.
The Shanghai Composite Index dropped 0.7 percent to 3,612.49 at the close, capping the steepest loss since Dec. 8. Drugmaker Beijing Tongrentang Co. and developer Gemdale Corp. plunged at least 6.9 percent. The overnight repurchase rate jumped to the highest level in three months. Trading volumes in Shanghai were 16 percent below the 30-day average, with most regional markets shut for the Christmas holidays.