China’s stocks snap eight-day rally on housing policy reversal

China’s stocks fell, dragging the benchmark index lower for the first time in nine days, on concern the government will retain measures to curb gains in housing prices this year.

China Vanke Co. led a gauge of developers down the most in three months after the China Securities Journal said Shanghai scrapped a plan allowing some non-local residents to buy second homes. PetroChina Co. slid the most in almost two weeks as crude oil traded near a one-week low. Chinese liquor maker Kweichow Moutai Co. and Wuliangye Yibin Co. advanced at least 1.3 percent on speculation earnings growth for consumer staples producers will be shielded from an economic slowdown.

The Shanghai Composite Index sank 23.37 points, or 1 percent, to 2,428.49 at the close, snapping an eight-day, 4 percent gain. The CSI 300 Index lost 1.1 percent to 2,634.14. The Bloomberg China-US 55 Index, the measure of the most-traded U.S.-listed Chinese companies, added 1.7 percent yesterday.

“The property policy reversal has damped investors’ expectations that an easing of policies would put the economy back on track,” said Dai Ming, a fund manager at Shanghai Kingsun Investment Management & Consulting Co. “That will weigh on sentiment given we’ve had a good rally this year.”