China Stocks Post Biggest Two-Day Drop This Year on Geopolitics, Growth Woes

  • CSI 300 Index has dropped 3.2% over past two sessions
  • Traders cash out due to geopolitical woes, upcoming holiday

A stock ticker in Pudong's Lujiazui Financial District in Shanghai, China.

Photographer: Qilai Shen/Bloomberg
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The biggest two-day slide in Chinese stocks this year suggests traders may be losing faith in the market’s rebound as they reassess inherent risks including geopolitical tensions and a fragile economy.

The CSI 300 benchmark closed 1.2% lower to breach a key technical level, led by declines in technology and materials shares. That added to a 2% drop on Friday, when foreigners sold the most shares since late October.