China Stocks Fall to Two-Month Low as Material Shares Lead Drop
- Raw-material producers decline on concern about weak growth
- Economic fundamentals pressuring market sentiment: strategist
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China’s stocks fell to a two-month low, dragged down by material and technology stocks, amid signs of a slowing economy and rising odds of a Federal Reserve interest-rate increase.
The Shanghai Composite Index dropped 1.3 percent, paring losses in the last 30 minutes of trading to end the day above 2,800, a closing level that hasn’t been breached in the past two months. The ChiNext index of smaller companies retreated the most in a week on concern Chinese authorities are preparing to crack down on reverse mergers. Hainan Mining Co. led losses among material companies with a 5.5 percent tumble.