China Insiders Are Selling Stakes After Mammoth Equity Rally
- Sales have raised questions at some of the companies involved
- Blow to sentiment cuts against optimism over China stimulus
A man rides a motorcycle past a ZTE Corp. building in Beijing, China.
Photographer: Gilles Sabrie/BloombergThis article is for subscribers only.
Some Chinese executives and large shareholders are cashing out of their companies’ stocks after an explosive start to the year for the nation’s equity market, raising doubts over the sustainability of the rally.
The ChiNext gauge of technology and small-cap shares, a particularly volatile index, suffered its biggest loss since October on Wednesday, tumbling 4.5 percent in the wake of insider selling announcements. It fell another 2.6 percent Thursday, for its biggest two-day loss since June.