The Chinese Government Just Triggered a Selloff in the Country's Shares

Shenzhen Composite Index slides 2.8 percent, most since July
Xinhua warns on Moutai stock gains; Shanghai Composite drops

JIUJIANG, CHINA - JUNE 24: (CHINA OUT) Investors watch the electronic board at a stock exchange hall on June 24, 2013 in Jiujiang, China. Chinese shares dropped remarkably on Monday. The benchmark Shanghai Composite Index down 109.86 points, or 5.3 percent, to close at 1,963.24. The Shenzhen Component Index fell 547.52 points, or 6.73 percent, to close at 7,588.52. (Photo by VCG/VCG via Getty Images)Photographer: VCG/Getty Images

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By Bloomberg News

November 17, 2017 at 6:08 AM UTC

Updated on

November 17, 2017 at 8:32 AM UTC

This article is for subscribers only.

Chinese stocks slumped, led by Shenzhen shares, as a warning by state media that one of the nation’s hottest stocks was climbing too fast triggered a selloff.

The Shenzhen Composite Index closed down 2.8 percent, its largest decline since July 17. Liquor makers and technology companies that had outperformed this year were among the biggest contributors to losses. In Shanghai, Kweichow Moutai Co. plunged 4 percent after Xinhua News Agency said shares in China’s biggest liquor maker should rise at a slower pace.