China's crackdown brings developers back to earth

Hong Kong

THE world's most extreme stock rally is getting a reality check.

After share price gains at Chinese property developers accelerated at a breathtaking pace in the past month, led by an 87 per cent surge in Sunac China Holdings Ltd, the momentum has started to turn as authorities have taken a harder line on reining in financial risks. Six of the 10 best performers on the MSCI All-Country World Index in the one month through Sept 21 were Chinese real estate firms. Chinese developers had their biggest slump in six years on Monday, before some rebounded on Tuesday.