Chinese Stocks Enter Correction as JPMorgan Cuts to Underweight
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China’s stocks fell, dragging the Hang Seng China Enterprises Index down 12 percent from this year’s high, as slowing growth and faster inflation spurred JPMorgan Chase & Co. to downgrade the nation’s shares.
The Hang Seng China index slumped 2.1 percent to close at a three-month low of 10,794.70. The Shanghai Composite Index declined 1.7 percent to 2,240.02 and the CSI 300 Index lost 1.5 percent to 2,502.49. JPMorgan cut China to underweight and recommended bearish derivatives tied to the country’s four biggest banks, Adrian Mowat, its chief Asia and emerging-market strategist, wrote in a report today.