Skip to content
Subscriber Only
Business
Economics

China Stocks Enter Correction as BlackRock Sees Bubble Bursting

Customers look at a monitor displaying stock prices at a China Construction Bank Corp. branch.

Customers look at a monitor displaying stock prices at a China Construction Bank Corp. branch.

Lam Yik Fei/Bloomberg

Chinese stocks tumbled, capping their worst week since the global financial crisis in 2008, amid mounting concern that the nation’s longest bull market has propelled valuations to unsustainable levels.

The Shanghai Composite Index sank 6.4 percent to 4,478.36 at the close on Friday. The gauge lost 13 percent this week, entering a correction after falling more than 10 percent from its June 12 high. About 400 Shanghai shares fell by the daily limit as a gauge of volatility jumped to the highest since 2009.