Optimism has been running high that the current rally is different from previous short-lived rebounds, with a growing number of global money managers turning bullish on the once-shunned market. Yet, the frenzied trading over the past week has also raised concerns of a bubble as equity benchmarks reached overbought levels.
A historic rally in Chinese stocks took a breather on Thursday, as traders took profit following gains of more than 30% from a September low.
The Hang Seng China Enterprises Index fell as much as 4.8%, the most in two years and set to snap a 13-day run of gains. The Hang Seng Index also dropped more than 4%. Chinese developers led the losses after a gauge tracking the sector surged by record on Wednesday. Mainland Chinese markets remain closed through Oct 7 for the Golden Week holidays.
