CHINESE stocks fell from a 13-month high yesterday, posting their worst session in nearly four weeks, as comments from top policymaking bodies raised investor fears that the government will slow the pace of policy easing after some signs of stabilization in the world’s second-largest economy.

After initially opening on a positive footing, the Shanghai Composite Index closed down 1.70 percent, or 55.76 points, to close at 3,215.04. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, was off 1.51 percent.

The weakness came after a top decision-making body said Friday China will maintain policy support for the economy, which still faces “downward pressure” and difficulties after better-than-expected first-quarter growth.

It added that China will push forward structural deleveraging and prevent speculation in the property market, suggesting attention may be turning back to debt risks that any further substantial stimulus measures may create.

Investors had interpreted that as meaning “that the government will suspend the easing of monetary policy,” said Shen Zhengyang, an analyst at Northeast Securities. “Large caps like financials and the real estate sectors suffered big losses today accordingly,” he added.

Real estate property firm China Vanke dived 6.26 percent and China Construction Bank was lower by 3.28 percent.

Investors still need to wait for the best time to buy stocks, as the pace of money flowing into the stock market could slow in the short-term due to the government’s counter-cyclical adjustments, CITIC Securities analysts wrote. (SD-Agencies)