2015.01.0801:36:56UTC+00Chinese stocks sheds biggest in two weeks on unfavorable forecast

Chinese stocks shed its biggest loss in two weeks as strategists remain concerned on excessive rallies as year forecasts show declines for China’s benchmark index.

The Shanghai Composite Index lost 1.7% to 3,317.04 set for its biggest loss since December 24. China’s benchmark index has already advanced a total of 64% for the year 2014, making it the best performer out of 93 global indices.Speculations of a government stimulus to support the economy in the form of easing in the monetary policy is still spreading across the market. The CSI 300 Index shed 1.9%. Hong Kong’s Hang Seng China Enterprises Index added 0.4% while the Hang Seng Index rose by 0.6%.

Citic Securities Co., China Life Insurance Co, and China Construction Bank Corp. all dropped by at least 3%. Huaneng Power International Inc. sank by 3.4%.

According to the forecast of HSBC and the Bank of America, the Shanghai Composite Index will end the year at 3,100 and 3,000 respectively.