China Stocks Plunge Most in 13 Months; Jiangxi Copper Falls

By Bloomberg News

July 29 (Bloomberg) -- China's stocks plunged the most in 13 months, led by commodities companies, as speculation recent gains have outpaced earnings prospects overshadowed China State Construction Engineering Corp.'s surge in debut trading.

Jiangxi Copper Co. dropped 6.9 percent, paring its annual advance to 336 percent, after saying first-half profit fell. China Cosco Holdings Co. the world's largest operator of dry- bulk ships, slid 6.7 percent as it forecast a loss. State Construction jumped 60 percent from its offer price in the world's largest initial public offering in 16 months.

The Shanghai Composite Index lost 235.17, or 6.8 percent, to 3,203.2 as of 2:26 p.m., set for its biggest decline since Juen 10, 2008 and snapping a five-day, 7 percent winning streak. The gauge has almost doubled from last year's low as government stimulus spending, record bank lending and an economic rebound spurred demand for equities. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, slid 6.9 percent to 3,496.88

"Metals shares have moved ahead of fundamentals and the whole market is facing increasing risks as valuations are getting more expensive," said Yan Ji, who helps oversee about $850 million of investments at HSBC Jintrust Fund Management Co. in Shanghai.

--Zhang Shidong. With assistance from Chua Kong Ho in Shanghai. Editors: Richard Frost, Linus Chua

To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at +86-21-6104- 7014 or szhang5@bloomberg. net