Chinese stocks fell for the first time in eight days as brokerages tightened lending restrictions and investors speculated the government will take measures to cool the nation’s world-beating equity rally.
Changjiang Securities Co. dropped 4.3 percent after joining larger rivals GF Securities Co. and Haitong Securities Co. in increasing its margin requirement, the collateral put up by an investor when borrowing. Industrial & Commercial Bank of China Ltd. slid the most in a week after the Shanghai Securities News said regulators asked lenders to report their investment in stocks. Shanghai Golden Bridge InfoTech Co. jumped 44 percent in its debut as nine companies began trading for the first time.
The Shanghai Composite Index fell 1.4 percent to 4,872.46 at the break, halting a seven-day, 15 percent rally, while the Hang Seng China Enterprises Index slumped 2.2 percent in Hong Kong. Record growth in margin debt helped fuel a 140 percent gain in the Shanghai index over the past year, the most among global indexes tracked by Bloomberg.