Chinese stocks tumbled, with the Shanghai Composite Index heading for its biggest monthly loss in two years, amid mounting concern that the nation’s longest-ever bull market has peaked.
Friday’s rout was paced by technology shares and smaller companies, the leaders of China’s world-beating rally through mid-June. About 41 stocks fell for each one that rose on the Shanghai Composite, which sank 7.4 percent to close at a seven-week low of 4,192.87.
China’s $ 8.8 trillion stock market has plunged from first to worst on global performance rankings as leveraged speculators unwind their positions and a growing number of analysts warn that valuations have climbed too far. Morgan Stanley advised clients to refrain from purchasing mainland shares in a report on Friday.