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Chinese Small-Cap Stocks Fall the Most on Record on IPOs

China’s stocks fell, with a gauge of smaller companies posting the biggest drop on record, amid concern the government’s plan to restart initial public offerings will divert funds from existing equities.

The ChiNext Index of companies with a median market value of $1 billion sank 8.3 percent to 1,253.93 at the close, paring this year’s gain to 76 percent, as technology shares plunged. The Shanghai Composite Index slid 0.6 percent, trimming a loss of as much as 2.2 percent after data showed manufacturing topped estimates in November while PetroChina Co. and China Petroleum & Chemical Corp. rallied in the last 15 minutes of trading.