Mainland China shares on Friday recorded their biggest fall in five months, reported Caixin. Shares had gained almost 25% since January before Friday’s fall, stirring worry about a potential bubble.
The benchmark Shanghai Composite Index fell 4.4%, the largest decline since October, and the smaller Shenzhen Component Index lost 3.25%.
Financial institution stocks led the fall after two brokerages this week downgraded securities firm China Securities Co. Ltd. and state-owned insurer The People’s Insurance Co. of China Ltd. (PICC) to a sell rating. Both of the companies fell by the 10% daily limit on Friday.