The Shanghai stock benchmark retreated from a fresh 10-year high to close lower on Tuesday, as investors rotated into undervalued sectors following a blistering rally.
** The Shanghai Composite Index 000001 ended 0.4% lower to 3,868.38, surrendering earlier gains that had lifted it to a fresh high since August 2015.
** China’s blue-chip CSI300 Index 3399300 declined around 0.4% after touching a fresh intraday high since July 2022.
** Investor enthusiasm remains strong, with combined turnover on the Shanghai and Shenzhen exchanges exceeding 2 trillion yuan ($279.61 billion) for the tenth consecutive session, the longest such streak on record.
** However, technical indicators began showing early signs of exhaustion following a roughly 25% rebound in the Shanghai benchmark since its April low.
** The relative strength index (RSI) was at 87.9, well above the 70 mark that many analysts consider indicative of an overheated market.
** “After…
