Chinese stocks capped their worst three-day run in nearly two years yesterday, prompting worries that the world-beating rally that began late last year is poised for a reversal.
Since hitting a seven-year high on April 28, the Shanghai Composite index has lost 9 per cent, most of it in the past three days. The index is still up 70 per cent since November.
Several news items have spooked the market but analysts said profit-taking was the main factor, fuelled by a sense that a correction is due.
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