China Stocks Fall Again Despite Data

China stocks fell early on Wednesday, as the market’s rebound from last Thursday prompted heavy selling in spite of better-than-expected economic data.  Small caps led the decline after four consecutive sessions of gains, but banking shares were firmer following the previous day’s losses.

The CSI300 index fell 2.4 percent, to 4,012.25 points at the end of the morning session, while the Shanghai Composite Index lost 2.4 percent, to 3,830.49 points.  Stocks also fell in Hong Kong, with the benchmark Hang Seng index dipping 0.4 percent.

After plunging by a third since mid-June, the mainland market has stabilized following a slew of government measures aimed at stemming the free-fall.  “The government has done its job, and the market is going back to its own tempo,” said Qi Yifeng, analyst at CEBM Group Ltd.

Reuters

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