China’s stocks dropped the most in a month on heavy volume, led by smaller companies, as investors weighed whether an equity rebound had gone too far.
The Shanghai Composite Index slid 3.1 percent to 3,320.68 at the close, the most since Sept. 15. The ChiNext index of smaller companies slumped 6.6 percent after soaring 40 percent through Tuesday from last month’s low. Leshi Internet Information & Technology Corp. and East Money Information Co., the heaviest-weighted ChiNext stocks, both tumbled by the 10 percent daily limit. Jiangxi Copper Co. paced declines for material producers, tumbling 7.8 percent.
“The market has accumulated decent gains and faces resistance as the index approaches the 3,400 to 3,500 level,” said Qian Qimin, an analyst at Shenwan Hongyuan Group Co. in Shanghai. “Investors were waiting for opportunities to lock in profits and when there were signs of some profit-taking, others followed suit.”
The CSI 300 Index of Shanghai and Shenzhen equities slid 2.9 percent. All of the measure’s 10 industry groups fell, with technology companies retreating 7 percent for the biggest decline. Hong Kong’s market was shut on Wednesday for a holiday.
Trading volumes in the Shanghai Composite were 60 percent higher than the 30-day average on Wednesday. The gauge has rebounded 8.8 percent in October, heading for the steepest monthly advance in six months, amid speculation the government will loosen monetary policy and announce more overhauls of state-owned enterprises to bolster the economy.
Sungy Mobile Ltd (NASDAQ:GOMO) provides mobile Internet products and services that focus on applications and mobile platform development in the People’s Republic of China and internationally. Sungy Mobile Ltd shares are trading 47.08% above their 52 week low price after the last close and -44.68% below the 52 week high. Its latest closing price was up 1.57% from the average-price of 200 days while it kept its distance from the SMA50 at 4.56% and 4.47% compared with the SMA 20.
Shares of Shanda Games Limited(ADR) (NASDAQ:GAME) were 41.34% off 52 week lows as of the latest close and -0.57% below the 52 week high. Its latest closing price was above 7.48% from the average-price of 200 days while it maintained a distance from the SMA 50 at 4.09% and 2.59% compared with the SMA 20. Shanda Games Limited(ADR) develops, operates, and publishes online games in the People’s Republic of China and internationally.
Phoenix New Media Ltd ADR (NYSE:FENG) provides content on an integrated platform across Internet, mobile, and TV channels in the People’s Republic of China. The stock’s latest price traded at 20.93% off 52 week lows after the closing bell and was -55.26% behind its 52 week high. Its latest closing price was -30.02% below the SMA200 while the distance from the SMA 50 and SMA 20 was -2.39% and 3.83% respectively.
E-House (China) Holdings Limited (ADR) (NYSE:EJ) is trading 36.85% higher than the 52 week low price and – 29.86% below the 52 week high. The stock’s latest closing price was 3.49%up from the average-price of 200 days while it kept its distance from the SMA50 at 9.34% and 6.16% compared with the SMA 20. E-House (China) Holdings Limited hrough its subsidiaries, operates as a real estate services company in the People’s Republic of China.
New Oriental Education & Tech Grp (ADR) (NYSE:EDU) provides private educational services under the New Oriental brand in the People’s Republic of China. New Oriental Education & Tech Grp so far this year has moved down 24.90% and its monthly performance stands at 31.40%. The stock was up 40.92% from its 52 week low and was -6.21% below the 52 week high. Its latest closing price was up 15.02% from the average-price of 200 days while it kept its distance from the SMA50 at 22.53% and 20.32% compared with the SMA 20.