Shanghai: China’s stocks fell for the first day in five, dragging the benchmark index from a record, as investors judged recent gains to more than reflect earnings prospects. China Vanke Co. and Baoshan Iron and Steel Co., among the biggest contributors to the rally, led the decline.
The CSI 300 Index, which tracks yuan-denominated A group shares listed on China’s two exchanges, declined 56.46, or 1.2%, to 4,668.09, ending a four-day, 10% gain.
Industrial and Commercial Bank of China, the worst- performing stock on the CSI 300 Index this year, jumped by as much as the 10% daily cap.
The benchmark’s 14-day relative strength index, a moving average based on whether the gauge rose or fell, ended on 7 August at 73. A reading above 70 signals to some analysts shares are likely to fall.
China Vanke, the nation’s biggest listed property developer, fell 3.3%. The stock surged 20% over four days before dropping 1.7% on 7 August.
Baoshan Steel, the largest steelmaker, lost 3.2% after jumping 19% over the past four days.
China Vanke’s relative strength index finished at 84 on 7 August, while Baoshan Steel’s was 83.