China developers sink as the world's biggest stock rally loses steam

Hong Kong

IT HAD to end sooner or later. After an almost 400 per cent 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 per cent 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 per cent since July 27, and Country Garden Holdings Co dropped 3.6 per cent. Still, the decl…