China stocks drop from 11-week high on commodity retreat amid a crackdown on pump-and-dump scheme
Iris Ouyang, 19 May 2021
Stocks in mainland China retreated from a three-day advance as commodity prices eased and lingering concerns about global inflation soured appetite for risks. Financial markets in Hong Kong were closed for a public holiday.
The Shanghai Composite Index fell 0.5 per cent to 3,510.96 at the close of Wednesday trading, after a rally this week that lifted the gauge to the highest level in 11 weeks. The Shenzhen Composite Index climbed 0.2 per cent, while technology-heavy ChiNext rose 0.8 per cent.
China Oilfield Services fell 4.9 per cent to 15.35 yuan while China Coal Energy lost 5.7 per cent to 7.40 yuan. Aluminium Company of China fell 3.1 per cent to 5.28 yuan. Prices of crude, aluminium and copper fell from their highs in recent trading.
Among other key movers, the world’s most valuable liquor distiller Kweichow Moutai fell 0.5 per cent to 2,049 yuan. China Tourism Group Duty Free added 2.7 per cent to 326.52 yuan. Ping An Insurance dropped 1.3 per cent to 69.97 yuan. Traders were also watching out on the fallout from a pump-and-dump scheme as market regulators started probing into stock manipulation involving a number of smaller companies in the nation’s US$11 trillion onshore markets, following revelations by a hedge-fund manager.
