“Investors are getting more selective now since equities are no longer cheap,” said Manpreet Gill, Asian strategist at Barclays Wealth, which has $238 billion in assets. “A further correction is possible.”

“Speculation the central bank may take steps to rein in liquidity worried the market,” said Gabriel Gondard, deputy chief investment officer at Fortune SGAM Fund Management Co., which oversees about $7.2 billion in assets. “A lot of people were looking to take profit” after the market gains.

“I can tell you no institutions are getting in at these levels, the valuation is just crazy,” said Chris Tang, chief investment officer at Marco Polo Pure Asset Management in Hong Kong, which oversees about $120 million. “Traditionally IPOs make money, so retail investors are going to try their luck.”

“Bank lending could be tightened in the second half of the year as new lending in the first half is already close to the full-year target,” said Li Jun, Shanghai-based strategist at China Central Securities Holdings Co.