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China's MSCI Rally Fizzles as Billionaire Rout Highlights Risks

  • Shenzhen Composite slumps as Wanda, Fosun shares plunge
  • This is a stock market with Chinese characteristics, CEB says
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If international investors needed a reminder of the dangers lurking in China’s stock market, they got a big one on Thursday.

Less than 36 hours after MSCI Inc. said China’s domestic shares would join its benchmark indexes, a selloff in companies owned by two of the nation’s richest people sent shock waves through the market. The Shenzhen Composite Index dropped 1.3 percent in the last hour of trading, erasing a gain of 0.2 percent.