Pursuits
China's Stocks Sink as State Funds Go Absent, Developers Decline
- Real estate shares slump amid speculation of cooling measures
- Inflation accelerates at fastest pace in 20 months in China
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China’s stocks slumped, led by financial companies and energy producers, as traders weighed the level of government support for the world’s second-largest equity market.
The Shanghai Composite Index slid 2 percent at the close, adding to Wednesday’s 1.3 percent drop. The gauge extended losses in late trading, a reversal of the pattern seen this week, when suspected buying by state-backed funds lifted shares toward the end of the day. Industrial & Commercial Bank of China Ltd. and PetroChina Co., which led the daily rebounds, fell at least 1.4 percent. A measure of property developers tumbled the most in two weeks on concern the government will take steps to cool home price gains in top cities.