China Stocks Plunge Most in Two Months on Bank Reserve Increase
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China’s stocks plunged, driving the benchmark index down the most in two months, as the central bank ordered banks to set aside more reserves and rising property prices signaled policy tightening measures may be expanded.
Industrial and Commercial Bank of China Ltd. and China Construction Bank Corp. led declines for banks after the government boosted reserve requirements for the fourth time in two months to curb liquidity. Property developers China Vanke Co. and Poly Real Estate Group Co. slid more than 6 percent. Qingdao Haier Co., a home appliances maker, fell the most in two months on concern higher interest rates will damp consumer spending.