China Market tumbles 2%

The Mainland China share market finished session lower on Friday, 02 July 2021, as risk aversion selloff triggered across the board on growth concerns after latest data showed China's June factory activity dipped to a four-month, while China's non-manufacturing Purchasing Managers' Index also fell during the month.

Sentiments were also dampened after the Chinese Communist Party marked its centenary with tough talk by Chinese President Xi Jinping. In a speech Thursday, Xi warned that anyone who tries to bully China will face broken heads and bloodshed. Xi appeared to be hitting back at the U.S. and others that have criticized China's trade and technology polices, military expansion and human rights record.

 

At closing bell, the benchmark Shanghai Composite Index was down 1.95%, or 70.02 points, to 3,518.76. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 1.86%, or 45.48 points, to 2,396.78. The blue-chip CSI300 index fell 2.84%, or 148.54 points, to 5,081.12.

Stocks have pulled back amid concerns about China's economic slowdown after data on manufacturing and services industries in recent weeks, while a flare-up in Covid-19 cases involving the more contagious Delta variant also dashed the hopes for further reopening of borders.

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