China’s stocks fell for the first time in three days amid concern over the sustainability of the market’s rebound as the government pares support measures.
The Shanghai Composite Index dropped 0.3 percent to 3,635.55 at the close, erasing a gain of as much as 0.6 percent in the last hour of trading. A gauge of technology companies, this year’s best performer, slumped the most among industry groups, while the small-company ChiNext index tumbled 2.2 percent. Jiangxi Copper Co. led a rally for metal producers. Industrial metals surged as the country’s largest copper and nickel suppliers were said to be planning to meet this week to find ways to cope with a supply glut.
The Shanghai Composite has risen 24 percent from its August low. The market rebound has prompted authorities this month to relax some emergency measures imposed during a mid-year rout including resuming initial public offerings and scrapping a rule requiring brokerages to hold net-long positions. The gauge’s 10-day volatility has fallen to an eight-month low, while the number of new investors jumped to a four-month high last week.
Source : Bloomberg