Chinese stocks fall back to earth with a thud

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Chinese stocks came back to earth with a thud today after the greatest leap since July 10 on Tuesday.

The benchmark Shanghai Composite index lost 1.62%, closing at 3695.76. On Tuesday the index rose 3.69%.

Losses were led by utility and technology stocks. Industrials, down just 1.15%, outperformed.

Month-to-date the index is up 0.84%, having fallen by 14.4% in July.

Large-cap stocks fared worse than their smaller peers with the SSE 50 and CSI 300 finishing down 1.83% and 2.06% respectively.

Small-cap stocks were the relative overachievers on what was an otherwise lousy day for stocks. The CSI 500 and Shenzhen Composite finished down around 1%.

Elsewhere the ChiNext index, China’s answer to the US Nasdaq, fell 1.73%.

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