Chinese Stocks Drop After Greenspan Remarks
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Chinese stocks trading in American fell after the former chairman Federal Reserve, Alan Greenspan, said he was concerned that equities in the world’s fastest growing major economy might undergo a “dramatic contraction.” China Petroleum & Chemical Corp., Asia’s largest refiner, led a decline in energy companies on the New York Stock Exchange. Shares of China Life Insurance Co., the country’s largest insurer, also retreated. Speaking to a conference in Madrid by satellite, Mr. Greenspan said the rally in Chinese shares “is clearly unsustainable.” He joins Asia’s richest man, Li Ka-shing, in voicing concern about the stock market in China, where the benchmark CSI 300 Index rose to a record yesterday. The Chinese market “is due for correction,” a manager at Acadian Asset Management, Charles Wang, said. “The bubble is reaching its latest stage.”
