China Stocks mixed on fresh signs of economic slowdown

The Mainland China share market finished session mixed on Tuesday, 31 August 2021, as risk sentiments dampened after official data showed domestic services industry contracted in August and factory activity expanded at a slower pace in August. Meanwhile, sentiments were also hurt on concerns over continuing regulatory clampdown in China after new regulations that tighten the time under-18s in China spend on online video games.

At closing bell, the benchmark Shanghai Composite Index added 0.45%, or 1579 points, to 3,543.94. The Shenzhen Composite Index, which tracks stocks on China's second exchange, fell 0.46%, or 11.24 points, to 2,429.86. The blue-chip CSI300 index dropped 0.16%, or 7.66 points, to 4,805.61.

 

China's factory activity grew at a slower pace in August as compared with the previous month, data released Tuesday showed. The official manufacturing Purchasing Managers' Index for August came in at 50.1, against July's reading of 50.4. Meanwhile, the official non-manufacturing PMI for August came in at 47.5 its lowest reading since the height of the pandemic in early 2020. PMI readings above 50 represent expansion, while those below that level signal contraction.

CURRENCY NEWS: China yuan was down against the dollar on Tuesday, after softer mid-point fixing by central bank. Prior to the market opening, the People's Bank of China (PBOC) set the midpoint CNY=PBOC at 6.4679 per dollar, 2 pips down from the previous fix of 6.4677. In the spot market, onshore yuan was changing hands at 6.4678 at midday, 7 pips weaker than the previous late session close.

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