Shares fall for second day on slower growth in China's services

Index struggles to exceed 3,330 level, brokerage says

SHANGHAI stocks fell for a second day today following slower growth in China's services sector.

The Shanghai Composite Index shed 0.37 percent to 3,272.93 points. Turnover fell to 243.6 billion yuan (US$35.8 billion).

Sentiment was sluggish during today's trading after news circulated late Wednesday that the Trump administration might be weighing an investigation into “a Chinese intellectual property regime that requires foreign companies to transfer technology to local subsidiaries and partners.”

Investors were also affected after a private business survey showed today that China's services sector’s expansion eased in July amid a moderating new business growth.

Central Securities wrote in a note today that the key index is facing pressure to break through the 3,300-level in the near future.

Financial shares gave up their previous gains, with Guoyuan Securities off 0.86 percent to 13.85 yuan and Citic Securities losing 0.85 percent.

Material shares, however, continued their strong momentum, with Aluminum Corp of China adding 4.52 percent to 6.71 yuan and Lingyuan Iron & Steel Co jumping by the daily limit of 10 percent. 

Special Reports