Chinese stocks posted the biggest selloff in five months on Friday, underscoring investors’ concerns over a growing valuation bubble after two stocks' ratings were cut to "sell", extremely rare move in China's A-share market.
The benchmark Shanghai Composite Index collapsed 4.4 per cent to close at 2,969, the largest decline since October 11. The smaller Shenzhen Component Index lost 3.25 per cent and the Chinext index fell 2.2 per cent.
Stocks of nonbank financial institutions led the slump after two brokerages this week downgraded leading securities firm China Securities Co. Ltd. and state-owned . . .
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