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The world's biggest stock rally loses steam

Bloomberg Published on Tue, Aug 08, 2017 / 3:18 PM GMT+8

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(Aug 8): It had to end sooner or later. After an almost 400% surge this year through late July that led an unprecedented rally among Chinese developers, China Evergrande Group shares are now leading the way down.

Evergrande, the top performing stock in the MSCI All-Country World Index in the 12 months through a July 27 record, slumped 20% since then to rank among the top decliners. Evergrande and other high-flying developers have fallen from records in the past week as investors are betting that a tightening campaign by leaders to cool home prices will hurt sales in the second half.

Sunac China Holdings Ltd. shares have fallen 7.5% since July 27, and Country Garden Holdings Co. dropped 3.6%. Still, the declines are minuscule compared with the immense gains notched amid red-hot demand for property in China. Sunac shares rose 4% on Tuesday, bringing its gains over the past year to 250%, and Country Garden advanced 2.5% for an almost 200% increase over the past year. Evergrande shares rose 4% in Hong Kong trading.