Chinese Stocks Cap Their Biggest Weekly Decline in Eight Months
- Rising money market rates trigger losses in Chinese assets
- Property developers are biggest decliners for the week
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Chinese stocks capped their steepest weekly retreat since April as surging money market rates reduced investor demand for the nation’s assets.
The Shanghai Composite Index slumped 3.4 percent this week, ending Friday 0.2 percent higher at 3,122.98 at at the close. Property companies fell the most during the week, with China Vanke Co. plunging more than 9 percent. A regulatory crackdown on insurers’ stock investments added to investor jitters. China Huishan Dairy Holdings Co. suspended share trading Friday after short seller Muddy Waters Capital LLC said the company is “worth close to zero.” The Hang Seng China Enterprises Index lost 0.1 percent, taking its weekly loss to 4 percent.