China's Rebound Gone Within a Day With Even Biggest Stocks Crumbling
- Shanghai Composite sinks 2.5% as yuan losses accelerate
- Analysts see few catalysts for sustained gains in near future
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China’s stock investors seized on Friday’s rebound as a chance to sell, with equities lurching lower in afternoon trading to the weakest close in two years.
The Shanghai Composite Index slumped 2.5 percent on Monday, more than wiping out a 2.2 percent rally on Friday. That follows a pattern over the past few weeks, where any gain has been erased the following day. In a further sign of capitulation, state-owned giants are bearing the brunt of the declines, with index heavyweight Industrial & Commercial Bank of China Ltd. plunging the most since February.