China Stocks Decline on Weak PMI Data

The Shanghai Composite fell 0.8% to below 3,600 while the Shenzhen Component lost 0.5% to 11,145 on Thursday, extending recent weakness as disappointing economic data weighed on sentiment. China’s official manufacturing PMI signaled a sharper-than-expected contraction in July, reflecting sluggish economic momentum and persistent trade tensions with the US. Growth in the services sector also slowed, hitting an eight-month low. Although US and Chinese officials wrapped up their latest round of trade talks in Stockholm earlier this week, President Donald Trump has yet to approve another extension of the current tariff truce. Investors are now focused on the upcoming Politburo meeting for potential stimulus signals aimed at stabilizing the economy. Among the notable laggards were Contemporary Amperex (-2.3%), Inner Mongolia Yili (-6.5%), Wuxi Apptec (-1.9%), China Northern Rare Earth (-4%), and BYD Company (-2.6%).