CHINA’S stocks posted their biggest fall in more than five months Thursday, as investors cooled down their buying spree on signs of policy tightening after the country’s economic growth in the second quarter beat expectations.

The Shanghai Composite Index closed down 4.50 percent at 3,210.10 and the blue-chip CSI300 index plunged 4.81 percent, their largest drops since Feb. 3. The tech-heavy startup board ChiNext Composite Index, which earlier this week turned hotter than any benchmark in the world, fell as much as 5.93 percent, also its worst session since Feb. 3.

Investors are taking profit from the bull run in the last two weeks that has priced in a rebound in China’s economy, analysts said. Foreign investors are also turning to sell Chinese stocks on worries of deteriorating Sino-U.S. relations, they added.

Shares in Semiconductor Manufacturing International Corp. more than tripled as they debuted on the Shanghai STAR market Thursday.

Data Thursday showed the Chinese economy returned to growth in the second quarter, expanding a better-than-expected 3.2 percent. While industrial output rose 4.8 percent from a year ago, retail sales shrank 1.8 percent, weaker than a projected 0.5 percent increase. That suggests the recovery is still largely industry-driven, with consumer sentiment remaining fragile.

“This shows that the release of pent-up demand is moderating,” said Sylvia Sheng, a strategist in Hong Kong with J.P. Morgan Asset Management. (SD-Agencies)