Stocks dip on IMF outlook
Shanghai stocks dipped on Tuesday as market sentiment weakened after the International Monetary Fund maintained its outlook for slower growth for China’s economy this year.
The Shanghai Composite Index lost 1.18 percent to close at 2,579.70 points. Shares of telecommunications, computer and media companies were among the biggest losers. Brokerages and liquor makers also retreated.
Investors turned cautious after the IMF maintained its outlook for China’s economic growth at 6.2 percent this year, the same as last October’s forecast. China reported Monday growth of 6.6 percent in 2018.
“As seen in 2015 to 2016, concerns about the health of China’s economy can trigger abrupt, wide-reaching sell-offs in financial and commodity markets that place its trading partners, commodity exporters and other emerging markets under pressure,” the IMF said in its report. The IMF forecast the global economy to grow 3.5 percent in 2019.
Fiberhome Telecommunication Technologies Co fell 3.20 percent to 29.02 yuan (US$4.26) and Shanxi Xinghuacun Fen Wine Factory Co declined 2.96 percent to 37.09 yuan.