China’s Hottest Stocks Sink as Beijing Cools Speculative Fervor
- ChiNext measure falls as much as 3.5% before paring decline
- Overseas investors sell a record $2.5 billion of China stocks
This article is for subscribers only.
Volatility is picking up in China’s most overheated stocks, a sign that this month’s $1.5 trillion rally is looking vulnerable.
The ChiNext Index plunged as much as 3.5% Tuesday before paring the decline to 1.1% at the close. The gauge, where a 10% daily cap on individual stock moves will soon double, was up more than 60% this year and near the most overbought on record. Overseas investors sold a record $2.5 billion of China stocks Tuesday.