Weak Manufacturing Data Weighs on Chinese Stocks

MT Newswires Live
31 Jul

Chinese shares slumped as sentiment was dampened by official data showing weak factory activity in July.

The Shanghai Composite Index fell 1.2%, or 42.51 points, to finish Thursday's trade at 3,573.21. The Shenzhen Component Index lost 1.7%, or 193.26 points, to 11,009.77.

China's manufacturing purchasing managers' index or PMI slipped by 0.4 of a percentage point to 49.3 in July, according to data from the National Bureau of Statistics.

The figures were attributed to a decline in some of its major sub-indices, particularly production and new orders, highlighting weak demand amid the upcoming expiry of the trade truce with the US. No new trade resolution was made after the two-day meeting in Stockholm, raising concerns that the tariffs will hike again as the tariff reprieve expires on Aug. 12.

In corporate news, Hisense Home Appliances Group's (HKG:0921, SHE:000921) Shenzhen shares dropped 5.6% despite its first-half attributable net profit rising 3% year on year to 2.08 billion yuan and its revenue increasing 1.4% to 49.3 billion yuan.

China Yangtze Power (SHA:600900) declined by 3% despite its first-half attributable profit rising 14% to almost 13 billion yuan and its total operating revenue climbing 5% to 36.6 billion yuan year on year.

Yonghui Superstores (SHA:601933) also fell 3% amid plans to raise 3.99 billion yuan from a share placement plan, with the proceeds to be mostly used for upgrading stores and logistics projects.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10