Kweichow Moutai Co investors are selling their shares at the fastest pace in more than two years, a warning for a market that owes much of its rally to a handful of large caps. The biggest stock listed in mainland China has lost US$78billion since onshore markets reopened after the Lunar New Year holiday. Wednesday’s 4.6% drop takes the five-day decline to 15%, the biggest for such a period since October 2018. Moutai had rallied 30% this year through its Feb 10 record close.
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SHANGHAI (Reuters) - As China’s blue-chip index approaches an all-time high, growing fears about bubbles developing in some parts of the country’s stock market are prodding some investors to seek bargains in Hong Kong.
FILE PHOTO: Investors stand in front of an electronic board showing stock information on the first trading day after the week-long Lunar New Year holiday at a brokerage house in Shanghai, China, February 15, 2016. REUTERS/Aly Song
Retail investors have poured money into stocks via mutual funds, pushing valuations in sectors such as consumer, healthcare and new energy to multi-year or even record levels.