FX.co ★ China Stocks Fall on Weak Services Data

The Shanghai Composite index decreased by 0.51% to settle at 3,878, while the Shenzhen Component fell by 0.78% to reach 12,955 on Wednesday. This decline continues the trend from the previous session, as underwhelming data from the services sector has intensified economic apprehensions. A private survey indicated that the growth within the services sector has decelerated to a five-month low in November, attributed to a slowdown in new business expansion. The property sector continues to face challenges; for instance, China Vanke shares plunged by another 3.7%, hitting their lowest point since 2008, following an unexpected delay in bond payments. Technology stocks also suffered notable setbacks, with companies like Zhongji Innolight dropping by 3.4%, ZTE Corp falling by 4.8%, Sai MicroElectronics plummeting by 19.6%, Victory Giant declining by 1.6%, and Luxshare Precision dropping by 2%. Investors are now turning their attention to the forthcoming annual Central Economic Work Conference and the December Politburo meeting, seeking insights into Beijing’s future policy direction and growth targets for the upcoming year.