A rally in stocks seen to benefit from China’s deadly virus outbreak is fading.
The small-cap ChiNext index fell as much as 1.3% on February 11 before finishing down 0.7%. The gauge’s rapid rebound last week, when it took just two days to recoup all losses after China’s stock market saw a record stock sell-off, set the stage for the ChiNext to notch its highest close since late 2016.
Among the biggest laggards on February 11, Tianjin
Chase Sun Pharmaceutical Co dropped by the 10% daily limit for a second day.
The company, which has a drug being used in hospitals for virus treatment, posted a record 55% gain last week. Yealink Network Technology Corp, which makes communication equipment that aids remote working, has lost more than 5% so far this week after closing at a record high last week. The boom and bust cycle followed the largest swings for Chinese stocks since 2016.