03.08.202602:06:33UTC+00China Stocks Start August on a Sour Note

The Shanghai Composite Index slipped 0.5% to 3,813 on Monday, while the Shenzhen Component Index lost 0.8% to close at 13,467, as disappointing manufacturing data outweighed fresh signals of policy support from Beijing.

A private survey showed the manufacturing PMI eased to 50.9 in July, a four-month low, down from 51.7 in June and below market expectations of 51.5. Underscoring the softness in the sector, official data revealed that the manufacturing PMI unexpectedly fell to 49.2 from 50.3, signaling the first contraction since February.

At the same time, the People’s Bank of China reaffirmed its commitment to supporting the economy, pledging to maintain a moderately accommodative monetary stance, flexibly deploy policy tools, sustain ample liquidity, and guide financial institutions to keep credit growth balanced.

Financial stocks led the market lower, with notable declines in Industrial and Commercial Bank of China (-2%), Agricultural Bank of China (-3%), and China Construction Bank (-1.1%).