Newsstand cannot be closed by gesture

That's right, you cannot close Newsstand using the five-fingers pinch.

Use the Home button instead.

You have to ask Apple yourself, I am in no way affiliated with Apple:

http://www.apple.com/feedback/ipad.html

Yes they seem to want to make it clear that Newsstand is an app, not a folder. Previously it was an app that acted, sometimes, like a folder (a folder you couldn't remove). Now it's clearly an app and has to be quit or switched away from like any other app - using the Home button.

I can close any app using five fingers, except for Newsstand.

So, how can Newsstand be an app?

You are correct the five finger pinch doesn't work for Newsstand, but that doesn't alter the fact it's an app, it just not a normal app. The point is it's clearly not a folder which is how it was often perceived previously.

Newsstand is a unique feature of iOS 7, which should be seen as a sort of special folder for special apps.

Read more on Newsstand:

http://support.apple.com/kb/HT4943

No one from Apple is reading your posts in this forum.

This forum is for iPad users helping other iPad users, therefore the Apple feedback procedure must be used to contact Apple directly:

http://www.apple.com/feedback/ipad.html