Shanghai shares fall on weaker business indicator

Shanghai stocks fell today as market sentiment was dampened after Caixin data showed that Chinese business activity expands at the weakest pace since June 2016.

The Shanghai Composite Index declined 0.34 percent to close at 3,371.74 points. For the week, the gauge dropped 1.32 percent.

Investors were worried as Caixin said in its report today that the economy had a relatively weak start in the fourth quarter. 

Caixin China Composite Output Index fell 0.4 points from September to 51.0 in October, the lowest level since June 2016, the report said. It also pointed out that the index is mainly dragged down by slower growth in output in the manufacturing sector.

Manufacturers and services providers' optimism and business outlook weakened in October, Caixin added. According to Caixin's report, manufacturers and service companies' optimism toward the 12-month business outlook remained relatively subdued and was the lowest since July this year. 

Iron and steel providers, property developers and infrastructure companies were among the biggest decliners today.

Shenghe Resources Holding Co Ltd fell 6.54 percent to 17.58 yuan (US$ 2.65), Qinghai Jinrui Mineral Development Co Ltd shed 5.13 percent to 11.09 yuan and Chongqing Construction Engineering Group Co Ltd lost 3.95 percent to 7.79 yuan.