FX.co ★ China Stocks Decline on Weak PMI Data

The Shanghai Composite Index dipped by 0.8% to fall below the 3,600 mark, while the Shenzhen Component Index declined by 0.5% to 11,145 on Thursday. This downturn continued the recent market weakness, as investors reacted to lackluster economic data. Notably, China's official manufacturing Purchasing Managers' Index (PMI) indicated a sharper contraction than anticipated for July, underscoring the country's sluggish economic momentum amidst ongoing trade frictions with the United States. Additionally, growth in the services sector decelerated to an eight-month low. Despite the recent trade discussions between US and Chinese officials in Stockholm coming to an end, President Donald Trump has yet to approve a further extension of the existing tariff pause. Market participants are now looking ahead to the upcoming Politburo meeting, which may provide insights into potential economic stimulus measures aimed at stabilizing the economy. Key decliners in the trading session included Contemporary Amperex, which saw a 2.3% drop, Inner Mongolia Yili falling by 6.5%, Wuxi Apptec dipping 1.9%, China Northern Rare Earth decreasing 4%, and BYD Company down by 2.6%.