A scorching stock rally in China’s state-linked companies lost further momentum Wednesday, as investors cashed in on the robust gains recorded by financial behemoths and infrastructure builders.

An onshore index of central government-owned firms fell as much as 1.5%, extending Tuesday’s 0.9% decline. A gauge of Hong Kong-listed state companies slid 0.9%. Bank of China Ltd. and China CITIC Bank Corp. both lost more than 5% in Shanghai, with China Galaxy Securities Co. down by the 10% trading limit.

The rally started fizzling Tuesday after China’s disappointing trade data and fresh signs of geopolitical tensions rekindled concerns about a patchy economic recovery. While Beijing’s latest pledge to expand funding access for state firms was behind the recent gains, there’s skepticism that the market went up too fast without the support of solid business fundamentals.

The benchmark CSI 300 fell as much as 1%, adding to a 0.9% slide in the previous session.

To some investors, the SOE pullback isn’t alarming yet and shows little signs of a bubble.

“Though there is some profit taking today as the trade gained traction and caught many people’s attention, there is still plenty of investment value in SOEs at these levels,” said Li Shiyu, managing director at Guangdong Xiaoyu Investment Management Co.

“I think we are still right in the middle of the rally. However, I would advise waiting for a further dip before adding SOEs,” Li added.