BEIJING: China’s stocks fell, led by technology shares, on concern recent gains have been too far, too fast.
The Shanghai Composite Index slid 1.8 percent to 4,822.42 at the 11:30 a.m. break, while the Shenzhen Composite Index lost 3 percent from a record as a gauge of hi-tech companies tumbled. Reuters reported Golden Sun Securities Co. suspended margin financing for buying shares listed on the ChiNext gauge of smaller companies.
The world-beating rally by Chinese shares amid an economic slowdown is raising concern among some investors that valuations are excessive, especially in technology companies. Bill Gross took to Twitter on Wednesday to say Shenzhen shares are the next big trade for short sellers. Zhao Weiguo, who became a billionaire buying semiconductor companies, said the industry has entered a “serious bubble” in China.
The Hang Seng China Enterprises Index declined 1.5 percent and the Hang Seng Index lost 1.4 percent. The ChiNext index lost 3.6 percent.
