Stocks drop most in a week as technology companies slump
Domestic stocks fell the most in more than a week after ZTE Corp canceled a share buyback plan and technology companies slumped on concern recent gains were overdone.
The Shanghai Composite Index declined 0.5 percent to 3,632.90 points at the close, the steepest retreat since Nov 2. ZTE, China's second-biggest phone-equipment maker, and Leshi Internet Information & Technology (Beijing) Co, the largest Chinese mainland-listed Internet video provider, slid at least 2 percent. A gauge tracking technology stocks in the CSI 300, the best performer this year, fell 1.8 percent for the second-steepest loss among 10 industry groups. The small-cap ChiNext index dropped 0.8 percent.
Concern is increasing that Chinese stocks are overvalued after the Shanghai gauge rebounded 25 percent from an August low amid a worsening outlook for the economy and earnings.
