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By Bloomberg

Emerging-market stocks fell for a second day as the resumption of trading in hundreds of suspended Chinese shares led to a rout in Shanghai, outweighing better-than- forecast economic data. Russia’s ruble led currencies lower.

The MSCI Emerging Markets Index dropped 0.2 percent to 938.89 at 1:12 p.m. in London. China’s equity benchmark slid 3 percent as at least 1,240 shares in the country declined by their 10 percent daily limit. Russian equity indexes retreated as the preferred shares of OAO Surgutneftegas traded without the right to the latest dividends. The ruble weakened 0.5 percent against the dollar and the Turkish lira ended a four-day rally.

Chinese stock-market gains sparked by unprecedented government intervention are reversing as companies end the suspension of their shares after the recent meltdown. The Shanghai Composite Index declined 32 percent since June 12 through July 8, the world’s biggest slump, as investors bet valuations are unsustainable. As many as 701 stocks remain halted on mainland exchanges. The suspensions and trading limits have locked sellers out of 67 percent of the market.

“Emerging-market stocks are ignoring the China data,” Michael Wang, a London-based strategist at Amiya Capital LLP, said by e-mail. “The Chinese market had gone up three days in a row. So I did expect some profit-taking as the deleveraging from margin financing is still not done.”

China’s gross domestic product expanded 7 percent from a year earlier in the second quarter, beating estimates for a 6.8 percent increase. Federal Reserve Chair Janet Yellen releases her semi-annual testimony to the House Financial Committee at 8:30 a.m. in Washington. Greek Prime Minister Alexis Tsipras is braving a revolt in his own party as parliament in Athens debates a bailout of up to 86 billion euros ($95 billion).

‘Rally Over’

The three-day, 13 percent rebound in China’s stocks through July 13 may have run its course and come under pressure from shares ending their trading halts, Qian Qimin, an analyst at Shenwan Hongyuan Group, said. Better-than-estimated economic data reduces the chance of more monetary-policy support, according to Michael Every, the head of financial markets research at Rabobank Group in Hong Kong.

The Shanghai Composite Index fell, taking its two-day loss to 4.2 percent.

Six out of 10 industry groups in the emerging-markets gauge dropped, led by industrial and financial shares. The index has slid 1.8 percent this year and trades at 11.5 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index of advanced-nation shares has risen 3.6 percent in 2015 and is valued at a multiple of 16.5.

Debt Restructuring

Daewoo Shipbuilding & Marine Engineering Co. the world’s second-largest shipbuilder, plunged 30 percent in Seoul. The company may seek a voluntary debt restructuring, Yonhap Infomax reported Wednesday, citing unidentified government officials and creditors.

Russia’s Micex Index lost 0.9 percent and the dollar- denominated RTS Index slid 1.4 percent. The gauges have rallied at least 15 percent this year.

A measure of 20 developing-country currencies slipped 0.1 percent. The ruble traded at 56.7230 versus the dollar. The lira fell 0.4 percent, heading for the biggest decline in two weeks, before a public holiday.

The premium investors demand to own emerging-market debt over U.S. Treasuries widened two basis points to 346, according to JPMorgan Chase & Co. indexes.